How we invest and who we work with

Let us know how we can help your business grow

Discover the positive impact our investments have on Welsh businesses

Read the latest and access our media centre

Meet our team of investment professionals and find out more about Finance Wales

Peter Wright's viewpoint on... deal structuring

19/11/09

“The right investment package can help your clients achieve their growth plans,” Peter Wright, investment director.

Finance Wales structures deals made up of debt, equity or a combination of both. We always structure the deal based on a business’s ability to service debt.

What’s the right structure?

Our blended finance gives your clients the best chance to achieve their growth plans.

We structure deals to take account of businesses’ individual circumstances, but we always consider a range of factors when making a decision.

Cash-flow is the key

Cash-flow is an over-riding consideration. Is your client’s business generating revenue? Can it repay a debt investment? Does the business have visible cash-flow now or does it have the potential for future cash-flow? Is its cash-flow seasonal?

Businesses with cash-flow may find that debt investment or a combination of debt and equity suits their needs. This type of structure can help with the capital costs of further expansion.

With a pre-revenue business forecasting strong growth, an equity-based structure is more sensible. This type of deal suits early stage companies. Subsequent investment can help growing businesses to commercialise products and develop channels to market.

Business planning

Regardless of whether your client is just starting out or growing we need to know it has a robust business plan with a clear exit strategy.

We need to know your client has a real understanding of how it will achieve its growth plans and grow its revenues and profits. Some key questions your clients need to consider: how is its management team made up? Are there skills gaps? What market does the business operate in? What is its market awareness? Has it considered external threats as well as opportunities?

We can often work with businesses to strengthen these key aspects of their business plan and ensure they have the best chances of success. Our web site contains information about writing a business plan which can help your client in making a successful application.

What you should do now

E-mail this page|

Print page|