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Corporate Finance : raising development capital |
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Companies' financial needs are constantly monitored and there are frequently times when a rearrangement of requirements and facilities is appropriate.
Moore Stephens are experienced in dealing with banks and other financial institutions and can help you put together written proposals for presentations to banks and others to assist you in negotiating and agreeing terms. We are able to draw on a wide range of skills and expertise to help you raise the capital required to start a new business or expand an existing one. Types of finance include:
Equity finance/ Venture Capital
A venture capitalist will tend to bring more to the equation than simply finance. In effect they will become a business partner bringing practical advice and expertise to help your business grow. The provider is an equity business partner and is rewarded by a company’s success and failure just like the other shareholders. The level of return sought by a venture capitalist will be higher than the senior debt provider.
Loan finance or Senior debt
Typically provided by banks, who are rewarded for their support by interest on and capital repayment of the loan provided, which is usually secured by the assets of the business.
Mezzanine Finance
Over recent years a hybrid facility has been developed which is in effect senior debt (in terms of it being loan finance) but has a similar risk reward profile to venture capital. Mezzanine Finance will typically be unsecured and the provider will consider taking shares or at least options over shares to compensate for the likely risk involved. The Mezzanine provider is rewarded with interest on the funding which will typically be more than the senior debt provider but a lower level of return than the venture capitalist will require.
For further information contact our experts, or click for further information about acquiring or selling a business or floating your company.
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