Preparing for investment, Sandip Sohal, My Business
The key to a successful private equity
investment is thorough preparation and organisation. It is key that
the right impression is made to any investor from the outset. This
is where our investment readiness programme can assist when
businesses are looking to raise finance.
The programme is delivered through a range of
workshops, assessment panels and one-to-one coaching where
delegates learn how to create a winning business proposition and
how to prepare for that all important investment deal.
It is a well-known fact that the
best-performing companies are those where the private equity
- Bought into the right company at the right time
- Backed a strong management team from the outset
- Focused on delivering sustained improvements, rather than
reinventing the business proposition.
Preparing for investment also means taking
time to conduct your own due diligence on an investor. The
investor’s experience is key to establishing a relationship and
ensuring that you obtain maximum benefit from the investor as it is
not all about the cash injection. Most private equity firms invest
across sectors but they also believe in the power of
specialisation. Our experience has shown that when they focus on
particular industry sectors they can find higher-quality deal
opportunities, establish credibility with management teams faster
and execute operational improvements more easily. But none of this
is possible without a period of thorough preparation and analysis
of your own business and industry.
Our experience has shown that when they focus on particular
industry sectors they can find higher-quality deal opportunities,
establish credibility with management teams faster and execute
operational improvements more easily. But none of this is possible
without a period of thorough preparation and analysis of your own
business and industry.
- Be open minded and helpful. The more time a private equity fund
has to assess your business, the more likely it is that the
investment will work. Give them the time and space to consider all
their options. Also assist where possible. For example prepare a
Stage 1 due diligence file with all the documents that typically an
investor would want to see at the early stages. This saves the
investor time and money and shows that you are committed and
commercial in your approach.
- Fine-tune your business strategy. Use the preparation period to
clarify how an injection of new funds will benefit your business.
Take advantage of our free audit where we will audit the business
from a corporate and intellectual property perspective and report
back on areas that require attention before you make a move to
introduce yourself to an investor.
- Agree to the ground rules. Be clear about how the relationship
with the investor will work and what will be expected. Don’t leave
room for misunderstandings later. Many investors usually appoint an
Investor Director to the board to manage and be the link between
the investor and the company. This ensures that there is regular
update and feedback being exchanged between the parties.
- Be ready to hit the ground running. Plans for achieving the
desired level of business improvement need to be specific,
measurable and realistic. Get as much detail in place as you
- Get the support of your key people. The investment is more
likely to be a success if your top people can see its benefits and
welcome the arrival of outside knowledge.
- Are you prepared for change?
- Which private equity firms have the most experience in your
- Do you have your house in order? Do you have a shareholder and
director service agreement in place
- Do you know what intellectual property you have? Is it all
protected? Can it be better exploited?
- When, and how, would you like to exit the business?
Contact us to discuss your business and proposition, and take
advantage of a free one hour audit of your business.
To take up this offer, please email email@example.com
or call our Birmingham office on 0121 562 1704 or London office on
0203 507 0152.