Partial exits enable the owners of a business to realise part of their wealth in cash, whilst continuing to participate in future growth of the business through a retained shareholding. Often these transactions also involve raising new capital in order to fund expansion, or, acquisitions. This capital can be either debt or private equity, or a combination of both.

 

In these projects, our role includes:

 

• Review of the current operating performance of the business and future opportunities available

• Definition of the exit strategy in terms of the proportions to exit / retain

• Identification of the most appropriate providers of finance

• Preparation of an Investment Memorandum (Business Plan)

• Approach to potential funders using our many and varied contacts

• Negotiation of funding terms

• Co-ordination of all other professional advisors

• Project management of the entire process so as to maintain momentum, minimise transaction risk and so ensure timely completion of the transaction ​

 

Case Study – Fund Raising and Partial Exit

 

Our client had been formed about 5 years previously with "seed capital" provided by the Executive Chairman and a number of ' high net worth' individuals who played no active part in the management of the business.  As the business concept was proven to be commercially viable a full management team had been recruited.  

The business now faced a cross roads.  It required £3 million to fund its planned expansion over the next 5 years and a further £1.5million to buy out the non-active founder shareholders and create new equity for the management team.

 

Our work comprised the following steps:

* analysis of the business to determine the feasibility of the fund raising
* preparation of a business plan to present to potential private equity investors such as the Business Growth Fund, NVM and others
* detailed analysis to support/negotiate the value of the company pre "new money"
* approach to " high net worth " investors to agree the buy out terms
* negotiation with five private equity firms to obtain the best terms for the new investment
* selection of a preferred investor
* management of due diligence process over a timely period (eight weeks)
* negotiation of commercial terms
* overseeing the due diligence process
* completion of the final investment