INVESTMENT PROCESS >
EXPANSION CAPITAL
 
   

Privately owned mid-market businesses often reach the point where an external funding source is required to enable the next stage of growth and development to occur. A capital injection may be used for such projects as production capacity expansion, research, product development, debt relief, overseas expansion, or additional marketing.

 

 

CONSIDERATIONS WITH PRIVATE EQUITY

1. Control
We will normally seek a controlling interest in a business. That said, a good partnership with management will most often involve healthy discussion and debate followed by consensus on a way foward.

2. Exit Strategies
We will want to exit the business usually within 3 to 5 years of our investment. This 'exit' is usually achieved via an IPO or a trade sale of the business. It is crucial that management is prepared at the outset to work to this aim.

 

 

WHAT IS REQUIRED:

A clear growth strategy.
A strong selling proposition or a sustainable competitive advantage.
A strong, well balanced management team.
A commercially viable business capable of supporting an appropriate funding structure.
A business that meets our investment criteria.
An exit plan.

 

 

HOW TO DO IT:

  Contact us to discuss the opportunity. We will be able to give you an up-front view on whether it meets our investment criteria. If the opportunity is not for us, we will give you open feedback and suggest alternative strategies/sources of finance.
  Prepare a business plan and allow us to review it. If the business plan fits our criteria we will look to meet with you and discuss the opportunity further.
  Following this a period of information review will be undertaken.
Agree terms with on how the deal will be structured.
Agree terms with the vendor/shareholders.
We will then conduct detailed due diligence.
Obtain debt finance.
Legal documentation.
Make your vision a reality.

 

 

WHY EQUITY PARTNERS?

 

Raising private equity funding can be a long, difficult and sometimes frustrating process. Undertaking the process with Equity Partners offers the following advantages:

  Our early involvement can save valuable time as we will give you a clear view as to whether we are likely to invest. If your business does not meet our investment criteria we can point you in the direction of alternate capital providers.
  We have significant experience in helping turn good companies into great companies.
  We have been involved in companies across a range of industries and can help put that experience and network to use for your company.
  We can help with the recruitment of a Chairman and other core members of the board and/or management team.