GETTING YOUR BUSINESS ‘INVESTMENT READY’

May 30, 2022

By Michael Cantwell, Head of Corporate Finance at RMT Accountants & Business Advisors

Earlier this month, the North East Fund announced that, in the four years since it was launched, it has raised more than £220m for over 350 regional businesses and helped them to create 1,500 jobs in the process.

On top of this, the Fund is now aiming to invest up to £40m more in in at least 150 more small and medium-sized firms in Northumberland, Tyne and Wear and County Durham over the next two years.

Having this sort of access to growth capital, whether through the North East Fund or the many other providers that are active in the regional economy, is an essential factor in enabling ambitious companies to implement their business development strategies and achieving their potential.

So if you’re thinking about taking your business down this road, what do you need to get it ‘investment ready’ and what do you need to do to get it?

The people that make your business are often the first things to be considered, which means both the management team that will be driving the implementation of the business plan in which you’re looking for an investment, as well as the workforce that will deliver it on a day-to-day basis.

Do they have the collective credibility, knowledge, skills and determination to turn what’s on paper into something more tangible, exactly how will they be doing this, how will venture capital involvement make success more likely and are there any gaps that you should be looking to fill?

A management team’s track record also plays a big part in weighing up the likelihood of success.

Can you show that your people and/or your business have achieved their commercial objectives in the past, that this experience is going to be used to make similar success more likely in your next venture and that you’re in the right shape to make this realistic?

The strength and extent of the competition you’re facing also makes a big difference – if you’re going up against a well-established or highly regarded rival, for example, how you are going to compete successfully with them, and what makes you stand out from the rest?

The impact of the pandemic has sadly seen many companies fail, but if you’ve been able to make it through the challenges of the last two years and have the foundations in place to progress from here, there may be a greater range of opportunities of which you can take commercial advantage.

Of course, you can do all the preparation in the world and still get things wrong on the day, as the many companies that have gone away empty-handed from the Dragons’ Den that have then gone on to do well regardless clearly show.

However, experience tells us that the more detailed planning, preparation and research you do, and the more expert support and advice you have in developing, refining and delivering your investment case, the more likely you are to succeed.

Even accounting for the uncertainties that surround us, the range of funding and investment solutions available means this is a good time for North East firms to look for the capital they need to make progress this year and beyond.

RMT Accountants & Business Advisors provides the full range of financial and business advisory services through its corporate finance, specialist tax, accountancy, healthcare, information technology and recovery & insolvency teams, and works with firms of all sizes both within and outside the North East.

For further information, please call 0191 256 9500 or visit www.r-m-t.co.uk

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