Equity Investment

Equity Investment is where an external investor, such as a high net worth individual, family office, fund or institutional investor (depending on the amount sought), provides capital investment in return for a shareholding in your business.

The Investor can often add significant additional value to your business, bringing new expertise, resources and industry contacts.

In return, investors are looking to generate substantial profits from their investment, typically within a three to seven year period. They normally only invest in businesses that meet their investment criteria, which are likely to include:-

  • Great product and compelling business proposition

  • Scalable business model with significant growth potential

  • Competitive advantage in a large target market

  • Strong management

  • Existing commercial traction delivering revenues and profits

  • Clear exit strategy for the investor

Once your business is ‘investment ready’, the next phase is approaching the correct profile of Investor with a comprehensive and well researched business plan and financials. This process will almost certainly require you to formally present (pitch) your investment proposition to investors.

A professional and well rehearsed investor presentation is essential. Once an investor is found, terms and valuation will be agreed and a process of ‘due diligence’ undertaken to check all the claims made in your business plan, details of trade contracts, the background of your key managers, and other relevant aspects of your business.

Harting Finance will work with you throughout this process, and significantly increase your ability to secure investment, which will start with an appraisal of your current proposition and ‘investment readiness’.

Summary

  • Equity Investment is an alternative form of funding, often combined with debt as part of an overall funding strategy
  • Equity Investors can add significant additional value, resources and skills to your business
  • Investors can provide access to new industry contacts and markets
  • New Investors are committed to helping you make the business successful
  • Equity Investment will strengthen your balance sheet, making other forms of funding (e.g. debt) more viable.

Your Requirements

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