Our Equity Advisory experts can help you arrange equity investment to support you through phases of significant business growth, either organic growth or the acquisition of a company. Typically, equity investment is sought where required funding exceeds amounts available organically or through a loan.
What does this service provide?
If you need to find equity investment, here’s some of the support our specialists can offer:
- We will discuss your reasons for wanting to raise equity and which type of equity is most appropriate to support your growth finance needs.
- We will discuss the requirements of investors and if your business plan meets their required returns.
- We can help you understand the demands that taking on board an equity investor can place on your business and ensure you are fully prepared for the change in governance.
- We can advise you on the most suitable form of capital for your business including debt financing, equity or mezzanine financing. Equity is the most expensive form of finance and you may not need to raise equity to meet your funding requirements.
- We can help you prepare your Information Memorandum and pitch deck as well as introduce you to the most suitable investors.
- We can negotiate and manage your transaction to a successful conclusion.
Important things to consider
- Equity investors are experts in transactions. This may be your first time. The return that an investor makes is a function of how good the deal is on the way in, and on the way out. You and the investor are only aligned for one part of that process. Expert advice ensures your interests are looked after ‘on the way in’.
- Equity financing requires detailed valuation of your business. Building a strong case for today’s valuation will minimise dilution by increasing pre-money value.
- Someone else will be taking a share in your company structure and own part of it. This may be new to you and your business and will no doubt come with restrictions and new levels of governance.
- Independent advice can broker the difficult elements of negotiation that will arise. You and the investor need a strong working relationship post deal, an advisor can help protect that relationship during challenging pre deal interactions.
- There is a wide spectrum of equity investors and the nature of equity investment means that selecting the right partner is essential.
How much will the service cost?
Our fees are designed to ensure that we are totally aligned with your objectives. We have designed, over years of experience, a balance between commitment fees and success fees that makes sure that we are “in it together”. Our objective is for clients to always see value in our fees that significantly exceeds cost.
What should I do next?
If you would like Shaw & Co to help you raise funds by releasing equity in your business, please contact one of our corporate finance experts shown on this page, or click the arrange a meeting button.
“There is no shortage of investors in the market from private investors, PE funds, VCs, institutional investors, pension fund investors and insurance investors all looking to find opportunities to invest in businesses like yours. But having a qualified corporate finance expert on your side advising who to go to, where to spend your time productively and how to maximise your negotiation position is the value we bring – in spades.”Jim Shaw, Founder & Partner