Private equity and venture capital investments provide businesses with opportunities for growth capital, exit planning and to bring expertise and experience to executive teams.
Venture capital is a term generally applied to earlier stage, higher risk ventures, whilst private equity is used to refer to more mature business either looking to fund growth (development capital), facilitate a management “buy-out” or a “buy-in” or to buy out prior investors (a secondary buy-out).
As a business looking to access the private equity and venture capital market you will need to consider a wide variety of factors as to what is best for your business at its stage in its life, what level of equity you are willing to put into the hands of investors and what valuation will an investor put on your business.
We recognise that personal chemistry with investors is often the key factor in a successful investment relationship and it is important that you invest time in working with your prospective investors to fully understand their criteria for investment, objectives for the business and key valuation points. Time spent at the outset of a relationship is usually time well spent.
You should expect any investor to carry out financial, commercial and legal due diligence and a well organised and structured business provides any potential investor with confidence.
Areas that we can assist with include:
- early stage discussions as to the appropriate investor for your business
- managing due diligence and dealing with legal enquiries
- ensuring appropriate confidentiality and other arrangements are in place
- dealing with key early stage negotiations of term of the investment
- documenting the terms of any investment
- putting in place new management agreements and employee incentive arrangements
- managing any debt investment alongside private equity