Over the past couple of years, cash flow pressures, creditor problems and challenges in accessing traditional sources of capital have led to many UK firms seeking specialist turnaround funding to help get the business back on an even footing.
However, many businesses remain unaware of the benefits of private equity funding. According to a recent survey by the British Private Equity and Venture Capital Association (BVCA):
- 85% of equity clients would recommend private equity and venture capital funding to other business owners;
- 90% said private equity funding was beneficial to their business;
- Almost 70% expect turnover to increase during the next year, with more than 40% predicting employment growth.
Hilton-Baird Financial Solutions has formed a strategic alliance with Beer & Young, one of the UK’s leading private equity firms having recently been voted Business Rescue Funder of the Year, to assist UK businesses in accessing equity and turnaround funding as part of the wider funding mix available in this challenging climate.
Through our alliances, we have access to over 1,000 active investors specialising in turnaround situations, possessing many years of experience in working closely with businesses.
An investor will act quickly where it sees true potential, making it of critical importance that owners make their business as attractive as possible by preparing and positioning themselves correctly, for example in terms of processes:
Cut excess costs
With the ultimate aim to make your business as appealing as possible, reducing any avoidable costs will help to demonstrate that your processes are as streamlined as they can be. From identifying more cost-effective yet sustainable suppliers to cutting down on printing, there are always ways to make your business more efficient.
Develop a plan for growth...
...and stick to it. Implement a detailed business plan that demonstrates the potential your business would have with the help of an investor’s funding, stating the sum you require, how it would be spent and the return on investment the investor can expect. Always detail their exit strategy – this is key to investors.
Ensure leadership
Potential investors will want to see that there is a strong management structure in place, with experience and a co-ordinated approach that maximises the growth possibilities.
Have your past accounts audited
Ensuring the business’ accounts add up will again increase the likelihood of investment by demonstrating your proficiency to a potential investor. External audits can be done for a small fee, with the longer term benefits making it an essential element of applying for equity funding.
To find out more about the funding options available to your business, please call our expert team on 0800 9774833, email info@hiltonbaird.co.uk or get a commercial finance quote.
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