How to prepare your business to raise private equity finance

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As one of the UK’s most active investors in high growth businesses, Maven receives introductions to hundreds of ambitious companies each year who are looking for a flexible and supportive investor that can bring capital and strategic expertise to help drive growth and value creation. However, not all companies are prepared for the expectations and demands that comes with a private equity partner. James Caplan, Investment Manager at Maven, looks at what businesses should do to ensure they have the best possible chance of success when raising external finance.

Published: Jun 27, 2023
Focus: Insights

First and foremost, your business needs a clear, credible strategy, capable of delivering your expansion plans. Growth investment is designed to support companies that have the potential to scale rapidly and generate significant returns for investors. Therefore, it's essential that you have a well-defined plan for expansion, including specific targets for revenue growth, customer acquisition, and market share. Investors want to see evidence that you have thought carefully about the company’s growth trajectory and have a realistic plan for achieving its goals.

Secondly, investors look for companies with a strong market position and a stable financial base, the ability to maintain consistent cash flow and manage expenses effectively This means having accurate financial statements, a clear understanding of revenue, expenses and cash flow, and also includes having a clear plan of how you will use the investment to increase profitability.

Thirdly, investors look for management team who have a broad or complementary skill base, want to develop professionally and have the ability to build a collaborative relationship. This means a team of proven individuals with the relevant sector experience, as well as a strong board of directors that can provide guidance and support. If there is a gap in the expertise of the team, it’s worth exploring the skills and sector knowledge of your network to recruit a Non-executive Director. If you work with an advisor, reach out to them to explore this option.

Finally, businesses need to have a clear understanding of the investment process. This includes knowing the investor’s specific requirements and expectations, as well as the timeline and terms of the investment. Be prepared to answer detailed questions about your business model, market opportunity, and growth plans, and be able to demonstrate that you have a clear idea of how the investment will fit into your overall funding strategy.

Whatever the situation, in order to prepare for success when approaching potential investors, proper planning and organisation is key. Ensure that you can present your strategy clearly and concisely, including detailed financials, highlighting the clear potential for growth and be able to demonstrate that the business is run by a proven management team which has the relevant sector experience.

Maven is passionate about working with ambitious businesses to achieve their strategic goals and maximise growth potential. If your business, or the business you advise, would like to find out how Maven works with management teams to add value or is looking at private equity as a solution to fund future growth we would love to hear from you. Speak to one of our investment team by getting in touch at

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