How do Private Equity (PE) funds evaluate businesses? What process can you expect? How to attract Private Equity funding.
Private Equity funds prefer to invest in growth stage companies, normally shying away from all but the very exceptional early stage businesses. Private investors (Angels) will invest in early stage or even start ups, and these investors can bring additional benefits of sector knowledge and useful contacts. Private Equity funds will normally require a Finance Director to be appointed by the growth company, however this can be satisfied by a part time Finance Director supplied by vfdnet. vfdnet will review your business and determine the best funding source, from banks, investors (business angels) and Private Equity. We are well placed to help match your needs using our extensive contacts with Private Investors, PE Funds and proactive bank managers. What is more the vfdnet part time Finance Director will normally become part of your management team, enhancing your probability of securing funding.
vfdnet services are as follows:
- Review of the suitability of the business for Angel investment or Private Equity backing
- Preparation of strategic presentation for potential external backers
- Financial projections to support bids for funds
- Acting as ongoing part time Finance Director
- Project management of the angel or Private Equity presentations
- Commercial management of the PE due diligence and investment process
The benefits of these services are clear:
- We help communicate your plans – your credibility is enhanced by having a part time Finance Director from vfdnet as part of your team.
- Improve the valuation, hence reducing equity dilution
- Helps prevent deal distraction which otherwise harms business
- Saves hassle for you
vfdnet part time Finance Directors have helped many businesses in the PE fundraising process and understand the requirements and approaches of these sophisticated investors. Why not contact us to find out more?
Case Study
vfdnet reviewed the business, produced a detailed financial business plan and strategy and presented this to potential Private Equity backers. Presentations were given to ten Private Equity funds that were subsequently short listed to two prior to final selection. Following detailed investor due diligence, and subsequent successful negotiation, the company successfully completed the multi million fund-raising.
Note: You can also download a factsheet on raising Private Equity in html or pdf format.
“We retained the services of our vfdnet Virtual Finance Director (VFD) to advise on the funding of the acquisition of another company that we had targeted. Our VFD recommended going down the Small Firms…” Read More >>
Mike M – MD and Owner
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