Q.
I have been trading for about two and a half years and currently employ 19 people. However, we are at a tricky stage. I want to increase sales but in order to do so I will need to move to new premises, hire more staff and invest in more resources. The business is cash positive, but hasn’t always been, and I am wondering how big a loan the company would qualify for. Is there a particular model that the banks use to calculate your ability to repay a debt?
Q.
I am planning on injecting some investment into my £7m retail business in order to continue expansion, possibly through a VC or a float. Currently, I have two private backers who own 20% of the business but who are willing to exit for the right price. What are the pros and cons of private equity and markets such as AIM? Also, how do I best maintain a grip on my company as investors and board members both come and go?
Q.
I’m currently thinking of taking on board an institutional backer, but want to know more about handling the post-deal relationship. Having run a business for several years, the last thing I want is to be told what to do by someone else all the time. So where do I draw the line? When should I take their advice and when should I not? In short, what’s the best way to handle a venture capitalist?
Q.
My original investor wants to sell his 25% stake in the business, but I am not in a position to buy it. He also wants to sell to an institutional buyer, although I am not sure if this is a good idea for the company. He is keen to move on and I would like to allow him to realise his investment, but I am unsure how to handle matters. What are my options?
Q.
I run a growing advertising agency based in Edinburgh. I am considering listing my company on AIM in order to fi nance expansion plans, but I am unsure as to what tax implications this will have. What is the tax position of an AIM quoted company?
Q.
I work for a family-run furniture maker in the West Midlands where the last family member is retiring as chief executive. I am considering a management buy-out and have spoken with venture capitalists; however, we’re not keen to hand over a seat on the board in return for fi nancial backing. What are the alternatives?
Q.
While the good news is that I am entering my third year running a successful outdoor equipment and clothing shop and sales are on the up, the downside is my finances are struggling to cope with such rapid growth. My loan and overdraft facility are already at their limit and my lender isn’t being particularly flexible. What are my options?
Q.
I’ve discovered my in-house accountant has made some quite serious errors which are likely to impact on our profits for this year. I’m in the early stages of raising angel finance and am concerned the deal will now break down in due diligence. How should I handle the situation?
Q.
My two co-directors and I own an engineering company. One of our competitors has got into trouble and is looking for a quick sale. We believe that the company – and its staff – has a lot to offer, but just needs a fresh injection of ideas. However, we would like to look into the alternatives of going to our bank for funding. Could asset lending help?
Q.
I run a medium-sized event management company that organises events for a number of prestigious blue chip clients. However, many of our clients are slow to pay their invoices and this is having a major impact on our cashflow. A number of my business peers have suggested I use invoice discounting, but I don’t know where to start. Can you help?
Q.
I’m preparing to pitch to several venture capital houses for growth finance to roll out my retail business. So far I’ve used a local accountancy firm but have been advised I’ll be taken more seriously if I use a corporate advisor from one of the big firms to put together our financials. Is this true?
Q.
I’m in negotiations for venture capital (VC) and am concerned about the due diligence process. The company’s books are immaculate but I had a poor credit history before I got into business and am worried this will be dragged up and go against me.
Q.
My 32-person fashion business includes two Yorkshire-based boutiques, a recently opened outlet in central London and a small design studio on the wholesale side. I have a £250,000 factoring facility in place to support the wholesale side, but need to raise funds of around £1m to open four further retail outlets, for which we have options in place. What method of funding would complement my existing arrangement?
