Prime Advantage Advisory
Prime Advantage Advisory
Corporate Finance Solutions
Prime Advantage Corporate Finance
Corporate Finance deals with the sources of funding and the capital structure of companies and aims to maximise shareholder value through the analysis and allocation of financial resources.
Prime Advantage Corporate Finance has been created to complement Prime Advantage Advisory and provide the option to our customers of a one stop shop for the provision of Advisory, Finance and Wealth services. Our Experts, have a wealth of knowledge and understanding of the needs of SME’s. As such, the integration of corporate finance along with advisory offers customers immediate access to a trusted partner to source funds.
PACF identifies the key elements to a successful fund raise to be: the strength of the management team, the demonstrable demand for the product or service, the size of the opportunity, and the quality of the business plan.
For customers looking to raise finance Prime Advantage can create financial models, identify optimal sources of funds, and prepare the company for investment. Furthermore for those looking to exit, Prime Advantage can advise on exit planning and exit options and through it’s sector networks identify potential acquirers.
Your Funding Choices
Through financial modelling, PACF identifies the appropriate capital structure for your business. Debt and equity are the main options for accessing capital. Debt has the advantage of not diluting the ownership and therefore control of the company, but restricts future cashflow through interest and loan repayments. Equity doesn’t have to be repaid and the risks are shared with the new investors, in exchange though some level of decision making is likely to be given up and the rewards shared may ultimately far exceed interest that would have been paid.
Typically when raising new equity, a shareholder agreement is put in place to set out the shareholder’s rights, privileges, protections and obligations.
For SME’s, PACF would look to source equity funding where applicable from SEIS and EIS schemes, Angel Networks, High Net Worth individuals, Family Offices, Crowd Funders, Venture Capital and Private Equity.
Preparing For Investment
In preparing for investment the key document is the business plan as the other documents will be largely be distillation of the plan, including documents such as Executive Summary, Pitch Deck and Information Memorandum.
A well formulated financial model which produces integrated 3 Year Financials is also essential. The model is to be based on credible assumptions which can be varied to create sensitivity analyses.
For a successful fund raise a high quality business plan and financial model must be combined with the other key elements being the strength of the management team, the demonstrable demand for the product or service and the size of the opportunity.
The common ways to exit a business include Acquisition, Management Buy Out, IPO and Lifestyle Business. Prime Advantage seeks to support companies that are looking to maximise their value through the sale of the business as a going concern, eliminating those seeking to liquidate or transform into a lifestyle business.
A company’s valuation is most usually calculated by a combination of discounted future cash flows and a multiple of EBITDA, PAT or even Revenue for hyper growth companies. As such exit planning must include examining ways in which to boost revenue growth and margins.
Where a trade sale acquisition is the most appropriate exit strategy Prime Advantages sector experts will work with PACF to identify potential acquirers, while PACF will provide analysis and advice to support the client’s decision making.
Equally in the case of an MBO or the execution of a family succession plan, Prime Advantage provide support and guidance through the transition period.
Prime Advantage Corporate Finance is an Appointed Representative of Ashberg Limited. Ashberg provides all regulatory functions on behalf of PACF. Ashberg is authorised and regulated by the Financial Conduct Authority.