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Equity investment available



Goldstone1976

We Got Calde in!!
Helpful Moderator
NSC Patreon
Apr 30, 2013
13,765
Herts
Firstly, despite the date of this post, this is not an April Fool's joke. Secondly, I have Bozza's permission to post this - he's going to convert it to a sponsored sticky for two weeks.

I'm looking for one-three small businesses in Sussex (or, at a pinch, southern home counties) to make an equity investment in. The total amount I'm seeking to invest is around £150k. I'm acting for myself and not as agent for anyone else.

Main requirements:

1) The business must have either some revenue already booked or a proper business plan that I can believe.
2) I'm not interested in convertible loans; simply an equity investment. I'd prefer the business to have only one class of share. If it has more than one, I'd need some persuading why the owner(s) thought it more worthwhile creating complex financial structures than generating revenue.
3) Financially, I'm looking for primarily capital appreciation rather than a dividend stream. If the owner(s) want to pay themselves via a dividend, it's relatively easy to structure a deal that works for both parties. In order to realise a capital profit, the most likely way is via a trade sale or (just possibly) an IPO. This means that the owner(s) has/have to be comfortable that at some point in the future the business is likely to be sold. Probable timescale to sale: 3-10 years, depending on current stage of business.
4) I doubt I'd be interested in a deal where my cash got less than 1% of the business; I certainly wouldn't want more than 49%. I'd be most comfortable in the 3-20% range.
5) A non-executive seat on the Board for a pre-money investment of 4% or more.
6) The business would ideally be in an industry where I could, if the executives so desire, add value in addition to cash. See experience below. Other businesses, not in the industries I know, may be ok too, but I'd have little to offer other than cash and general business skills.
7) The owners truly want the business, inter alia, to make money. Many SME owners avow that they do, but what they really want is a lifestyle business.
8) "Ethical" businesses only. For example, and this is not an exhaustive list, I'm not interested in investing in military hardware or tobacco.
9) The business should already be reasonably clear what its competitive edge(s) are. A "me-too" business holds little appeal.
10) The owner(s)/executives (likely to be the same people, I know) must feel able to trust me and vice versa. This is probably the single most important criterion. This trust can start to be built through any due diligence process.
11) Evidence that the owner(s) has/have truly internalised the fact that if you take someone else's money you have obligations to that person. It is no longer solely your business. You'd be surprised at how many people think they can take other people's money and then continue identically to before without any consideration that others now have a legitimate interest.

What can I offer?

1) Cash.
2) Time to help. This can be solely at Board meetings or more extensively as requested/needed.
3) Experience: Run various businesses in the UK and US, from pre-revenue to $200m t/o. Grown businesses at 40%+ compound organically. Extensive international sales/marketing experience. 20+ M&A deals; 3 IPO processes. A qualified accountant, but haven't worked as one for 20 years. Industries within which I have particular experience: engineering, science, software, semiconductors, medical devices, consumer, automotive, general B2B services. Little exposure in B2C markets.
4) Contacts. In the industries I know well, I have c2000 contacts at VP or C-level (including VCs, PE houses and corporate banking in the event that further funding is required).
5) Happy to act as Chairman if required.
6) Fairness and integrity. I will never seek to rip you off - the aim is for us to create a successful business.

To me, business success is only partially defined financially (though without financial success you don't have a business, you have a hobby or a charity). Other factors include the provision of secure employment paid at a decent rate, engagement in some way in the local community and, possibly, helping to better mankind's lot (grandiose, I know, but it's true :shrug: )

I think that will do to provide a flavour, so, if anyone has a business in the right geographical area that could do with some cash/someone with my experience set or knows someone who does, please feel free to PM me as a first step.

Oh, it goes without saying, shirley, that discretion is both offered and expected!
 


edna krabappel

Well-known member
NSC Patreon
Jul 7, 2003
47,228
Is this Dragon's Den?
 


tinycowboy

Well-known member
Aug 9, 2008
4,002
Canterbury
Seems like an interesting proposition for someone out there. Will NSC get some general updates on how this is going (board minutes, links to statutory acounts, salary details, secret recipes, etc)? ???
 


Goldstone1976

We Got Calde in!!
Helpful Moderator
NSC Patreon
Apr 30, 2013
13,765
Herts
Is this Dragon's Den?

Kinda, but I would never drive the pre-money valuation down to the levels that the Dragons tend to seek to! They mostly get an absolute steal, but then again, most of the businesses are pre-revenue or with very low levels of revenue...
 


happypig

Staring at the rude boys
May 23, 2009
7,935
Eastbourne
Am I the only one who hasn't the foggiest idea what this means ? Some of those phrases are just made up aren't they ("IPO", "PE houses", "B2C markets" etc) ? You're just teasing us thickos from the interweb.
 




skipper734

Registered ruffian
Aug 9, 2008
9,189
Curdridge
Amazing offer, and he doesn't want to steal the business, as the Dragons do.
 








Goldstone1976

We Got Calde in!!
Helpful Moderator
NSC Patreon
Apr 30, 2013
13,765
Herts
Am I the only one who hasn't the foggiest idea what this means ? Some of those phrases are just made up aren't they ("IPO", "PE houses", "B2C markets" etc) ? You're just teasing us thickos from the interweb.

Ha! Sorry. Here's a translation:

IPO = A BHA fan after a lucklustre 2-0 loss to Boro (I'm P*ssed Off)
PE House = "Penalty?" "EVACUATE back to your home (it'll be safer than the NS there)!"
B2C markets = Bloom To Convulse (at lack of playoff position)

Clear now?

IPO = Initial Public Offering = Flotation on stock market, like Royal Mail recently did.
PE House = Private Equity House = a company that provides lots of money to buy businesses
(VC = Venture Capitalist = a company that provides smaller amounts of money to fund businesses)
(Goldstone1976 = an individual that can provide even smaller amounts of money)
B2C - Business to Consumer = a business that sells directly to the public (ish)
B2B - Business to Business = a business that sells to other businesses
 


tinycowboy

Well-known member
Aug 9, 2008
4,002
Canterbury
Ha! Sorry. Here's a translation:

IPO = A BHA fan after a lucklustre 2-0 loss to Boro (I'm P*ssed Off)
PE House = "Penalty?" "EVACUATE back to your home (it'll be safer than the NS there)!"
B2C markets = Bloom To Convulse (at lack of playoff position)

I disagree: IPO is a kind of beer, PE House is a gymnasium and I think B2C is something to do with trains.
 


Tim Over Whelmed

Well-known member
NSC Patreon
Jul 24, 2007
10,165
Arundel
I Goldstone1976, feel free to PM and I'll give you my LinkedIn profile and website, think we may be able to help each other. Best wishes, Tim
 














edna krabappel

Well-known member
NSC Patreon
Jul 7, 2003
47,228
I don't have a business. So for that reason: I'm out.
 




Birdie Boy

Well-known member
Jun 17, 2011
4,107
Well I like the idea, it's unusual. I would invest £7.50 but would need 95% of the business and a £10 admin fee paid in advance.

This is unusual, so I will match your £7.50 investment but as there is no business I do not need any % of the non-business but I still require the £10 admin fee in advance.
 






edna krabappel

Well-known member
NSC Patreon
Jul 7, 2003
47,228
Well I like the idea, it's unusual. I would invest £7.50 but would need 95% of the business and a £10 admin fee paid in advance.

<twiddles biro, Deborah-Meaden-style>
 



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