Funding is “capital” for your business.
Entrepreneurs usually call for more credit for the productive fabric to promote the growth and expansion plans of their businesses.
Moreover, during specific periods of business growth the investments needed to face a company's strategic challenges are greater than the cash-flow they generate.
Under such circumstances, directors can opt for a number of alternatives: capital expansion and/or bank debt increase.
If none of the above options suffices to secure the resources needed, the company can allow new financial partners providing the funding needed to join its portfolio of shareholders.
Indeed, we at AddVANTE M&A are experts in seeking out new sources of funding
or loans for companies and we have excellent contacts with investment funds (venture capital) that are general or specialised according to industries and sectors, locally and globally, which have shown continuous interest in national and international companies.
How we can help you
Capital expansion is an investment made by private equity,
often by purchasing majority or minority stakes in mature companies seeking capital to undergo a business expansion or implement a restructuring plan.
“Many of these companies need capital expansion to fund a transformation milestone in their operating lives.”
They are often mature companies with a proven business model, excellent potential margin for growth and a firm, competent management team that generates sales and profit, but cannot accelerate growth through acquisitions
or other operations.
For this reason such companies often have few alternatives in order to secure capital for their growth unless it is through capital expansion.
Venture capital funds consist of an operation where financial capital is provided to start-up companies or those with low turnover and high potential for expansion which are subject however to several risks
during their growth stage.
These funds obtain profit from such operations when they become owners of the assets of the company they invest in, and such companies normally have an excellent management team and technology or a new business model in technological sectors such as biotechnology, ITCs, software, IoT, etc.
Seed Capital / Spin-off
Seed capital can be used to fund the costs of highly preliminary activities such as market research or product development.
"Investors may be the company founders who use their savings or personal credits (often below 50,000 euros) and even friends or family.
Unlike venture capital (in which investments often entail significantly more money and greater complexity in terms of the contracts and structure of the business receiving the investment), seed capital is a more direct, simple and immediate operation.
Mezzanine funding or debt is a subordinate long-term loan operation with debt and capital characteristics in which interests generated are formed by one variable area and one fixed area.
When companies reach maturity and face the need for funds in order to pay for investment projects to endeavour to grow and develop, SMEs are often highly dependent on short-term resources,
face difficulty in accessing this long-term funding and have limited security interests for traditional loans, meaning that mezzanine debt appears as a logical funding instrument for such circumstances.