Advisory & corporate finance
In short Approval once does not mean approval again Test whether you are an ‘undertaking in difficulty’ Keep real risk to investor capital Measure gross assets before the share issue Investors who join the board may count as employees Watch the 30% rule across equity and debt Knowledge intensive status can apply retrospectively If you … Continue reading Avoid later phase EIS pitfalls
In short Six things HMRC will look for in a first application Apply the risk to capital ‘gateway’ test Apply the independence test Check for excluded trades and borderline activities Check the employment test No blanket applications for speculative filings Check the share class and use of funds qualify EIS is a valuable venture tax … Continue reading Avoid first time EIS pitfalls
Financial models are powerful tools used for a variety of purposes to assess forward looking financial information to overcome limitations of relying only historic information Some of the best uses for financial models are: We support clients build financial models for a range of business requirements, from simple forecasts to developed models to support decision-making. … Continue reading How financial modelling can help improve business decision-making
In short The wrong business model, lifted from earlier work Complexity nobody else can follow Assumptions with no reliable data behind them Inconsistent formatting and colour coding Broken links between sheets and files No error checks and no validation Six common mistakes people often make when performing financial modelling: We support clients build financial models … Continue reading Six common mistakes in financial modelling
In short Use consistent formatting and colour coding Document every assumption you make Build in error checks and test them Validate against benchmarks and history Design for flexibility, not for rebuilds Review and test on a schedule If you’ve planned your financial model and started to build it We support clients build financial models for … Continue reading Six tips to help you create strong financial models
If you are a scale up business, you will already be familiar with the challenge of growing with limited financial resources. Our article ‘Considerations for Scale-ups when raising funds’ outlines some of the common solutions in addition to fundraising support we provide clients. Do you lack financing to sufficiently scale? The Scale Up Institute notes … Continue reading Access to Finance Challenges for Scale up Businesses
In the absence of a clear guide, many founders and their boards will chart a steady and linear progression in value, supported by revenue or profit growth, starting at the implied valuation of the initial investment and heading towards a target valuation with valuation reference points to validate this approach. In determining the target value … Continue reading How do you drive value when fundraising?
“Only 0.05% of startups raise venture capital” (Entrepreneur). The market is notoriously difficult for start ups but can be equally challenging for scaling and venture stage businesses. The risks of getting it wrong are not just that you don’t raise enough funds but also include giving away too much equity, incurring high investor costs or … Continue reading Considerations for Scale-ups when raising funds
Thinking of securing investment, an exit or MBO involving private equity? Tom Whittard, partner at Westbridge, gives three tips in an article in Corporate Financier magazine shown below. Contact us if you want to learn more about our advisory and corporate finance experience and support. 1 Deal Readiness Entrepreneurial business owners have a tendency to … Continue reading Seeking investors?