Corporate Commentary

Securing the funding to allow your start-up to grow can be a challenge: investors will want to run a ruler over your business. To navigate that process, it pays to understand some key issues. An investor will want to know many things.

If you own, or have shares in, a business, life events (such as a divorce) may have an impact on your business assets; planning ahead is key!

Private Equity has been notably absent, and the resulting M&A market was more challenging, with less pressure on buyers to close deals.

Foreign investment in UK business may be easier following reduction in those caught by The National Security and Investment Act 2021.

Employee Share Schemes provide and allow key employees to have an equity interest in your business, without the risk of creating minority shareholder rights, or recovering shares if the employee leaves.

When the cost of borrowing is high (as now), growing businesses will look to equity investment, in order to finance working capital/growth. What should businesses consider, when looking at an equity fund raise?

Many business owners are keen to move on with their lives, after a tough few years. Sale or Private Equity (PE) can be the answer, but if your business is not in a “hot” sector, or the growth profile does not attract investors, what are the options?

The choice for those outside the corporate finance community, is often shrouded in mystery. Where will I get the best price? What will each of these deals mean in practice? Many experienced private business owners don’t have previous experience of different deal types, and sometimes don’t like to ask the obvious questions.

Welcome to this monthly series for business owners, where Jonathan Grant aims to demystify the corporate market and highlight trends in a non-technical manner.