Funding & Private Equity

Many successful businesses reach a stage where external funding is required to achieve their objectives. Specialist knowledge and relationships are essential when exploring potential sources, including private equity, debt, asset-based lending and angel investors.

When a company is growing rapidly, for example when contemplating investment in capital equipment, new products and capabilities, or an acquisition, its current financial resources may be inadequate. Few growing companies are able to finance their expansion plans from cash flow alone. They will therefore need to consider raising finance from other external sources.

As well as providing the financial backing to deliver business growth, external funding can also be used for extracting shareholder value, for example via an MBO or MBI, or an equity release transaction in the form of a cash lump sum.

Sources of funding

There are a number of potential sources of funding to meet the needs of a growing business or to finance the personal objectives of the owners of a business:

• Private equity
• Venture capital
• Bank debt
• Alternative debt providers
• Factoring and invoice discounting
• Hire purchase and leasing
• Business angels
• Private family funds

WilliamsAli has spent many years building relationships and understanding with active providers of equity and debt finance, both regionally and nationally.  We help our clients navigate the complex landscape of funding providers, where an understanding of funding criteria, sector appetite and suitable structures is crucial in identifying the right solution.  

Whilst debt finance is typically a familiar and well understood concept, the intricacies of a private equity transaction can often be alien to a business owner or management team.  However, private equity represents a highly active and liquid source of funding to support the ambitions of an expanding business and can be an excellent catalyst for delivering value growth.  We help our clients by demystifying private equity through explaining, managing and leading every aspect of a transaction, including:

• Identifying suitable investors
• Presenting the business and the funding proposition
• Establishing and comparing appetite and offers of funding
• Building trust and a working relationship between our client and the investor
• Explaining and analysing different deal structures
• Negotiating terms and valuations
• Liasing with other advisers
• Project managing the transaction from start to finish

Please do not hesitate to contact us to discuss sources of debt and equity funding and how WilliamsAli can help you to deliver your plan.