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Get Added Value With Equity Investment

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Heinz Holsten, partner at Perwyn LLP, explains the added value that an equity investor can provide...

Get Added Value With Equity Investment

With an equity investor you are not just getting money, but indeed there is a fair amount of value added.

It’s hard to generalise these things, but most equity investors are very experienced in setting the right strategic agenda. They have attractive tools at their disposal to attract and retain management team. They attempt to have a deep Rolladex that can open doors in order to introduce a company to new customers, into new markets. And they do have experience in financial reporting and developing decision support tools which allow management to take better informed decisions based on transparent information.

Some investors bring very specific operational expertise along, which allows them to work hand in hand with the Executive Management Team, and when you think about a business that goes through growth or even rapid growth, it’s very important that you have an organisation in place that can scale which has the right processes, the right systems in place. And if you have an investor on the Board that understands those requirements and the need for investments ahead of the curve, then the dialogue between management and the investor is facilitated, but at the same time investors can challenge management and ultimately derive a better outcome for the business overall.

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