Cash-out transactions (also known as partial sales) enable the owners of a business to ‘bank’ some of the value that they have built into their business now, thereby de-risking their future, and then focus on driving the business forward to that next level.

 

This can be done by way of a debt and equity fundraising, bringing on board a financial partner who shares your objectives and can support you in the next stage of the business’s growth.  The cash-out can also be achieved through an ‘initial public offering’ (IPO) on the public markets, such as AIM (the London Stock Exchange’s market for smaller growing companies).

 

It is important that the correct option is taken and, with our experience of having advised clients on both debt and equity fundraisings and IPOs, we are able to outline the pros and cons of both routes so that you go into it with your eyes open as to what lies ahead.

 

We project manage the entire process to ensure that you chose the option that is right for both you and your business.

 

Our role would cover some or all of the following:

 

• Assessment and viability of the options, together with the most likely sources of finance (debt and/or equity)

• Introduction to the appropriate additional advisers if the IPO route is to be taken

• Preparation of a business plan and financial forecast

• Assistance with any presentation to funders

• Management of the discussions with the potential sources of finance and eliciting offers of funding

• Negotiation of the funding terms

• Close working with your lawyers to ensure the most favourable contractual terms are negotiated whilst a commercial perspective is maintained

• Proactive project management of the transaction through to completion