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Funding Growth & Acquisitions

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?.

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Funding Growth & Acquisitions

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  1. Funding Growth & Acquisitions Debbie Clarke Partner, ChantreyVellacott DFK

  2. Contents of presentation • Funding solutions • Options available • Current market trends • Acquisition vs organic growth • Valuation considerations • Due diligence dos

  3. Funding Solutions – Who is writing the cheque?

  4. Funding Solutions – Bank Debt • High street lenders • Alternative lenders

  5. Funding Solutions – Private Bonds • Private companies raising debt from customers and supporters has become more popular

  6. Funding Solutions – Private Equity / Venture Capital • PE / VC funds have • invested over £40bn in last five years • backed over 3,800 companies • 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%

  7. Funding Solutions – Public Equity • £363m New Money raised on AIM so far in 2013 compared to £1,000m in the full year 2003

  8. Organic vs Acquisitive Growth • Strategic plans need full buy in • Growth opportunity costs need to be carefully considered • Monetary cost • Time cost • Acquisitions can create value • Can your business afford to lose an acquisition opportunity to a competitor?

  9. Valuation Considerations • Maintainability of profits • Security of clients / contracts • Reliance on key staff • Sector USP • Contingent liabilities • Normalised working capital

  10. Due Diligence • Drive through Acquisition Strategy • Scope work • Financial • Legal • Commercial • IP • Roles and Responsibilities • Conclusions will aide • Final purchase consideration • Warranties & indemnities

  11. Due Diligence • Issues to look out for are: • Company info • Title to assets • Systems and controls • Material contracts • HR • Property • Compliance • Litigation

  12. 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

  13. Contact Us Debbie Clarke Partner Mobile: +447815 120 566 Email: dclarke@cvdfk.com www.cvdfk.com

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