How else does an investor add value?

Selecting the right funding partner to support your growth journey can provide your business with more than just cash. So how else does an investor add value?

Maven is often asked how we help businesses to grow, beyond simply providing funding. Ryan Bevington, Investment Director based in Maven’s Manchester office, sets out his advice on the added value an investor like Maven can offer pre and post investment. Maven understands the many challenges faced by small businesses as they grow, which enables us to play an active support role throughout a company’s development.

Raising investment and what to expect

Maven’s investment executives can provide valuable support to prospective investee companies prior to raising funding. We always give a candid, constructive analysis of the business plan presenting the case for funding, including guidance or introductions to help with business planning and best practice when modelling financial forecasts. Often, we find that this kind of dedicated support can enable businesses to easily identify the most suitable type of finance to meet their funding needs.

Maven will work closely with businesses to understand their business model and operational needs to structure the most appropriate funding package. Where Maven cannot provide funding, we will endeavour to point the management team to a network of advisers and other third-party funders.

Portfolio management

A private equity funder shares the risks and rewards by investing and working directly alongside the management team.  The decision to make an investment is an indication of our belief in what a business has achieved to that point and its vision for further growth, as well as a sign of our commitment to helping it succeed.

Maven’s aim with each company is to work in partnership with the management team throughout, to maximise value for all stakeholders. Typically, Maven will either take a seat on the board, appoint a non-executive director or take an observer board position. We conduct regular meetings with the management team to help the business develop appropriate strategy and governance to enable it to grow effectively.  One of the key advantages for an investee business in working with Maven is access to the in-house operational expertise of our national investment team. With over 250 years’ collective expertise of backing and working with UK SMEs, Maven offers extensive industry and commercial experience across a range of sectors, and the ability to manage a portfolio of dynamic private company investments.

Further financing requirements

We often provide follow on funding to businesses for growth or acquisitions and may introduce third party funding where appropriate. However, in our experience no two transactions are the same, with each business having different requirements based on a whole host of variables.  Our network of advisors and funders means we will source and structure funding packages appropriate to the company’s circumstances. Whilst any additional funding will be subject to having met growth targets, and a justifiable ongoing business case, we tailor our support to the businesses next stage of growth.

Creating shareholder value at exit

Maven remains involved through every stage of a company’s development up to and including the ultimate exit, to help them scale and achieve their growth aspirations. This can involve supporting management with both strategic and day-to-day operational issues, such as implementing new HR or business development initiatives, developing product portfolios, expanding overseas or identifying potential acquisitions. We can also provide valuable input with the challenges typically faced by entrepreneurial smaller businesses and the difficult decisions faced by its board.

From the outset we are focused on helping management to identify exit opportunities, leveraging our extensive regional connections in industry. We adopt a proactive and collaborative approach, working with the management team to prepare for an exit, shape the strategy to maximise shareholder value and work with advisors to help all stakeholders achieve their objectives.

So, are you looking for an investor that can support a business through its growth journey? Speak to Maven’s local team about your current and future needs, and our experienced investment professionals will be able to guide you on your funding requirements.

If your business is in need of finance to help unlock its growth potential, NPIF Maven Equity Finance may be able to help. Contact Maven’s local team today on 0161 233 3500.

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