o'hurley blair irwin

Management Buy Outs Business Restructure Our Expertise

Business ideas and products are only brought to fruition by the backing of equity capital and long-term finance. Long-term capital should be regarded as totally separate from the short-term finance that business requires to fund working capital of stock, debtors and creditors. Long-term bank finance is readily available when supported by tangible security such as buildings and land etc., but equity investment is required to fund development of the business, and more innovative methods of finance are required for these purposes. Our expertise is available to source finance in this area.

A venture capital fund puts equity into a company to help it expand. This usually includes appointing a director of the venture capital fund onto the Board of Directors. The business is expected to grow and expand with the help of the venture capital fund and the experience brought to the Board of Directors by the directors nominated by the venture capital fund. On receipt of the venture capital investment the business is expected to perform at a much higher profit level and the business would then be expected to grow further both organically and by the acquisition of other businesses. The venture capital investors benefit from dividend yields and the potential to realise their investment at a significant profit by the sale of the investment back to the other shareholders, new investors, or by bringing the company to the development market of the stock exchange.

Management Buy Outs
Venture Capitalists provide finance to help existing management to buy out the owners of the business they are employed in from the parent companies or groups of companies that wish to dispose of a subsidiary or from the owners of a family business that may wish to change their investment portfolio or retire.

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Business Restructure
Venture capital can also be used to restructure businesses that have a substantially profitable core business which are having their profits diluted or eliminated by one or more unprofitable peripheral divisions. The introduction of a venture capitalist in this situation together with the additional expertise provided by the venture capital director appointee will give additional comfort to company bankers. The successful receipt of venture capital generally results in a substantial increase in associated clearing bank finance which can totally restructure the business, eliminating unprofitable companies and returning the core business to high profits.

Characteristics Required

• Strong management team
• Good growth prospects
• Strong cash flow
• Good position in the market place
• Exit route

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Our Expertise
O'Hurley Blair Irwin can provide a full 'turnkey' consultancy service seeing prospective recipients of venture capital or management buy out firms through the whole process from inception to completion as follows:

• Sourcing suitable investors/disposers of businesses.
• Negotiation of buy outs.
• Negotiation of venture capital funds.
• Negotiation of associate banking and borrowing.
• Team leading in co-ordinating all other services such as legal venture capital agreements etc.
• Due diligence auditors.

We are authorised to carry out investment services by the Institute of Chartered Accountants in Ireland under the Investment Intermediaries Act 1989.

Our expertise in having advised and sourced clients through venture capital investments and management buy outs places us in a unique position to source the best structured investment for our clients through utilisation of our network with the various funds providing venture capital in these islands.