Attract business investors

Whether you want to grow or scale up your business, the route map to attracting investors, equity or bank funding begins with a credible business plan.

This makes sure all key issues are examined, including cash flow, trading forecasts and risks. It also helps to indicate how much funding you need in order to attract business investors.

But what finance option is the best? Who should you approach to get it?

Getting ready

Whether the money is for an acquisition, making capital expenditure or for working capital, you need to see things from the perspective of an investor.

The aim is to ensure that they are confirming information during due diligence, not that you are discovering it.

If your business is already trading, investors will also look closely at any management team: Does it deliver?

Take time to get your business structured to its best advantage. For example, a successful trading company may have an unprofitable property portfolio. It could be wise to put that property into a separate business entity rather than leaving it to drag on the accounts of the trading company.

Equity funding

This involves giving away part of your company in exchange for a cash injection. How much you surrender will depend on a range of factors, including your need, the strength of the business, and the risk involved.

But not all private equity investors are the same with regard to expectations and approach, so getting personal chemistry is important.

Private equity can add great value to a business, often bringing insight and expertise, but it can also make challenging demands. Relationships can also sour, particularly if performance targets are not met.

Tax advantages for an investor

There are ways to structure an investment that reduce the risk for anyone putting in money, making it even more appealing.

These include the Enterprise Investment Scheme (EIS), which reduces the tax liability for anyone who holds a stake in a company for at least three years. There are also other reliefs available to reduce Capital Gains Tax liabilities to 10%, although you will need to meet certain qualifying criteria to do so.

Debt and banking

The advantage of going down this road is not having to surrender a stake in your enterprise. There are also ways, with the advice of corporate finance experts, to structure deals to get the best advantage from them, such as through interest rate hedging.

Making your start-up attractive

Your business needs to look its best however you seek funds. But private equity investors will also look for particular information around a clear exit strategy for themselves. They will still expect a complete business plan to support all claims and projections being made, one that shows a market for your product or service.

If you are looking for business investors, whether now or in the next few years, it will pay to plan ahead.

If you are looking to attract business investors and would like some expert guidance, contact us to arrange to speak with one of our specialists in London, Kent or Sussex.

Contact our experts

If you are looking to attract business investors and would like some expert guidance, contact us to arrange to speak with one of our specialists in London, Kent or Sussex.

Contact our experts

"We would like to thank our advisors Kreston Reeves and Brachers, for introducing us to Percipient Capital and guiding us through the process. Demis and I started with an ambition to supply the ‘ontrade’ with service levels and a range that couldn’t be matched. We started the business with the strapline ‘A Fresh Approach to Drink Wholesale’ and have built a trusted brand in Kent. With the support of Jason and Ed we will ‘SET THE BAR’ that others will have to match across the country."

Mick Curtis, Managing Director of Drink Warehouse

VIEW CASE STUDY

Close

Contact our experts - Attract business investors

If you are looking to attract business investors and would like some expert guidance, contact us to arrange to speak with one of our specialists in London, Kent or Sussex.

  • yes I have read the privacy notice and am happy for Kreston Reeves to use my information