Funding Growth & Acquisitions
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Funding Growth & Acquisitions Debbie Clarke Partner, Chantrey Vellacott DFK
description
Funding Growth & Acquisitions. Debbie Clarke Partner, Chantrey Vellacott DFK. Contents of presentation. Funding solutions Options available Current market trends Acquisition vs organic growth Valuation considerations Due diligence dos. Funding Solutions – Who is writing the cheque?. - PowerPoint PPT Presentation
Transcript of Funding Growth & Acquisitions
Funding Growth & Acquisitions
Debbie ClarkePartner, Chantrey Vellacott DFK
Contents of presentation Funding solutions
o Options available
o Current market trends
Acquisition vs organic growth
Valuation considerations
Due diligence dos
Funding Solutions – Who is writing the cheque?
Funding Solutions
Bank Debt
PE / VC
Private Bond
Public Equity
High street lenders
Alternative lenders
Funding Solutions – Bank Debt
Funding Solutions – Private Bonds
Private companies raising debt from customers and supporters has become more popular
Funding Solutions – Private Equity / Venture Capital
PE / VC funds have o invested over £40bn in last five yearso backed over 3,800 companieso employ over 500,000 people
More funds available with 272 funds raising money in 2013
But entry and exit multiples are steady Exit numbers are down 20%
Funding Solutions – Public Equity £363m New Money raised on AIM so far in 2013 compared to
£1,000m in the full year 2003
Organic vs Acquisitive Growth
Strategic plans need full buy in Growth opportunity costs need to be
carefully consideredoMonetary costo Time cost
Acquisitions can create value Can your business afford to lose an
acquisition opportunity to a competitor?
Valuation Considerations
Maintainability of profits Security of clients / contracts Reliance on key staff Sector USP Contingent liabilities Normalised working capital
Due Diligence Drive through Acquisition Strategy Scope work
Financial Legal Commercial IP
Roles and Responsibilities Conclusions will aide
Final purchase consideration Warranties & indemnities
Due Diligence Issues to look out for are:
– Company info
– Title to assets
– Systems and controls
– Material contracts
– HR
– Property
– Compliance
– Litigation
Conclusions
There are many funding solutions in the market
Plan your growth strategy carefully
When looking at acquisition growth consider the value of any targets as well aggregate value for your business post acquisition
When making acquisitions due diligence preparation is key
Regularly review your funding needs
