Growth and development capital can be used to accelerate growth, fund acquisitions or offer liquidity to current shareholders, such as a transformational event in the business lifecycle. It may also enable you as a business owner/manager to partially exit and generate funds, facilitating the introduction of an investor to help drive growth.
There are many factors to consider when looking to source funding, including the investment timeframe, the individual time horizons of shareholders and the robustness of the business itself.
Successful growth capital investee businesses usually demonstrate having a profitable business with a robust track record and strong cash flows. In addition, they usually exhibit inherent growth in the market with the current owner and management team keen to drive business for the medium-term with a view to oversee the future growth prospects.
New funding may take the form of equity, debt or a combination of both. Equity investment can be sourced from a private equity (PE) investor or an alternative provider and will require a relinquishment of some shareholding to generate the returns required by the investor. If PE is not required, debt investment allows you to retain control and current shareholdings, albeit with a higher debt repayment burden.
Our growth and development capital specialists will help you work through the various scenarios and determine a structure that will minimise the cost of capital whilst facilitating business growth plans.
Our strong relationships with equity and debt providers also puts us in an optimal position to secure appropriately structured and effective funding for your business. We also understand the importance of establishing true partnerships between investors and business owners, and work hard to not only ensure efficient management of a transaction but also look to identify complementary cultures when recommending investors.
Whatever the reason driving your business, we will work alongside you to position your business for a successful fundraise and continuously maintain competitive tension in the process, delivering the most effective deal for you.