HOW WE WORK

We will want to be satisfied that a business meets Our Criteria and can address our MIRACLES factors. We need to gain confidence in the applicant(s) and their business at an early stage. 

Please see our Legal page before sending unsolicited business plans to us.

We aim for our interests and those of managers to be fully aligned such that we share in risk and reward. Once we have agreed outline terms our due diligence process will be concerned with verifying the past performance and current condition of the business and any other important representations made to us. Irrespective of our own investigations, we will require formal assurances concerning many of these issues. It is best to discuss any potentially negative matters with us at an early stage.

Managing Our Investments
Our aim is to back capable owner-managers and leave them to run the day-to-day affairs of their business without undue interference. We will agree in advance the principles governing the relationship. We expect to be dealt with in an open and honest manner. In broad terms, where we make equity investments our requirements will include:

• Approval of changes to shareholder structure.
• Approval of significant capital expenditure and other investments.
• Approval of significant borrowings. As a general rule we would expect external debt to be limited to: short term use of an overdraft to cover normal cashflow fluctuations; mortgages on freehold property; financing of equipment and vehicles.
• Approval of other significant long term commitments.
• Approval of board and other senior appointments and remuneration.
• Discussion and agreement of strategic direction.
• Discussion and agreement of business plans.
• Discussion and agreement of contingency plans.
• Early advice of significant unforeseen and adverse events.
• Supply of key performance statistics.

We will require board representation and expect most of our requirements to be covered through regular meetings with the CEO and at board meetings.Where we offer standby loans, because the relationship is shorter term we have fewer requirements. We do still expect:

• Supply of all communications issued to the Board and shareholders, including the supply of key performance statistics.
• Early advice of significant unforeseen and adverse events.
• Regular discussions to keep us informed of progress, likely drawdowns and timing of loan repayments.