Private Equity

Available to companies with potential viability who are currently losing direction due to financial and business problems, our private equity service will provide support and advice in return for a minority shareholding.

We expect the companies in which we invest to be in a difficult trading position, probably under pressure from chargeholders and creditors, and possibly to be approaching the point of failure. Notwithstanding, your board believe that the company has a core viability and should survive.

We do not take a controlling interest in your company but will require significant minority shareholding, usually 25%-30% of the equity.

In normal circumstances, we do not take a board appointment, but will take an advisory position to the board, allowing the existing shareholders/directors to retain control of their company.

There will be a planned exit strategy to allow the existing shareholders to buy back the shares allocated to Bridport Capital Limited at an agreed price or based on a profit formula. The exit route should have a timescale of 2 years or less.

For companies in which we invest, we shall:

  • Provide a financial appraisal of the company
  • Assist in identifying reasons for current financial position
  • Negotiate with chargeholders and creditors during the due diligence period
  • Prepare a business plan
  • Consult with all shareholders in the company
  • Facilitate proposals to stakeholders including Moratoriums and Voluntary Arrangements if required
  • Reach agreement with creditors including banks

Thereafter, we can:

  • Assist in the maximisation of sales and cash flow and other business issues
  • Assist in the period of business stabilisation
  • Assist in strengthening the managerial team
  • Produce guidelines for good financial controls and review issues relating to working capital and managerial control
  • Attend board meetings
  • Undertake periodic reviews to ensure budgeted targets are being met

To discuss your company requirements in confidence contact Keith Stout on keithstout@bridportcapital.co.uk or call 07790 906756.