From first call to shareholder.
Direct investments go through four stages. The principal you speak to first stays with the business through all of them.
The four stages
- Week 1
Introduction
A short note or a call about the business, the owners and what the capital is for.
- One conversation with a principal
- No obligation on either side
- An early view on fit
- Weeks 2–4
Review
Time with the owners, the numbers and the customers. The principals do the review; it is not handed to consultants.
- Accounts and contracts reviewed
- Customers and the sector spoken to
- A written view shared with the owners
- Weeks 4–8
Terms
A minority stake at a stated price, with information and board rights in a short term sheet.
- A short term sheet
- Information and board rights agreed
- Legal drafting starts once terms are agreed
- After
Ownership
We stay on as a shareholder, involved through the board where that was agreed.
- Board or observer seat by agreement
- Follow-on capital where it is earned
What to expect from us
- Who decides
- The principals who meet you and review the business make the investment decision and remain your contacts afterwards.
- Timing
- An early view on fit after the first conversation. Terms, if we get there, within about eight weeks.
- Control
- Control and day-to-day management stay with the owners. We ask for information rights and, by agreement, a board or observer seat.
- Our view
- Our view of the business is shared early, concerns included. If another type of partner would suit the business better, we will say so.
- Discretion
- We do not publicize our holdings.