A Guide to Private Equity - BVCA admin

Contents
BVCA mission statement 1
Private equity – investing in Britain’s future 2
Preface 3
An introduction to private equity 6
Definition 6
How this Guide can help you 6
What is private equity? 7
Would my company be attractive to a private equity investor? 7
Some of the benefits of private equity 7
Questions to ask yourself before reading further 7
Internal and external financial resources 8
Government sources of finance for SMEs and growing businesses in the UK 8
Business angels 11
Corporate venturing 11
Investment forums and networking organisations 11
Well-know private equity backed companies 12
The advantages of private equity over senior debt 12
Private equity compared to senior debt 13
Sources of private equity 14
Private equity firms 14
Where do private equity firms obtain the money to invest in my business? 14
How may the source of a private equity firm’s money affect me? 14
How do I select the right private equity firm? 15
Selecting a private equity firm 16
Targeting 16
Stage / type of investment 16
Industry sector 17
Amount of investment 17
Geographical location 18
The business plan 19
Essential areas to cover in your business plan 19
- The market 20
- The product or service 21
- The management team 22
- Business operations 22
- Financial projections 23
- Amount and use of finance required and exit opportunities 24
The presentation of your business plan 24
Things to avoid 25
4 A Guide to Private Equity