What Kind of public and private funding is available for business projects?
Despite the readjustment of the public sector when it comes to subsidies, there are still numerous funding channels for innovative business projects, whether at the start-up stage or during expansion and growth phases in the company.
Companies that undertake R&D activities and/or with an inclination towards internationalisation are particularly qualified for funding.
Here some references of interest: CDTI, ENISA, ICF, ICEX, ACCIO.
In the IMB consultancy and finance division we find the best funding channels and undertake the complete process of requesting, managing and justifying subsidies.
What is essential in a business plan?
A solid plan and attractive business always incorporate the following variables:
- Description of the product / service / technology that you want to bring to market
- Plan marketing and sales
- Plan production and logistics
- Investment Plan
- Plan funding and treasury
- HR Plan
The business plan should be able to explain what need and what solves introduces innovation compared existing solutions. You should explain clearly the market, competition and how the company is positioned regarding this.
When the business plan is focused on getting funding is essential to explain well what they go for the funds provided by investors, who will win, what will the investment time horizon and above all, what mechanism will exit from the company.
In the division of consulting and finance IMB have extensive experience in developing business plans business project in innovative sectors.
How can I value my company or my business project?
Depending on the level of maturity of the company or project and the sector it is in, there are numerous valuation methods that are widely used. One of the most common, particularly in start-up projects is the Discounted Cash Flow (DCF).
DCF establishes the current value of future cash flows by applying a discount on the basis of a rate that replicates the cost of the capital invested and the existing risk premium. It is often used when the company has no sales or profit history or when this is insignificant and when it is not possible to draw a comparison with other sectors or companies.
When projects are more mature and the company has a track record, the norm is to use valuation using multiples (EBITDA, net profit, turnover) and/or comparables in similar operations.
In sectors like the biotechnology industry systems like the rNPV (Risk Net Present Value) are often used to calculate the value on the basis of the future flows the project will generate, attempting to reduce the huge intrinsic risk of the R&D projects of a Bio company and the fact that they are often an all-or-nothing venture.
In addition and particularly in cases in which it is difficult to establish an objective valuation (start-up), ratchet clauses can be used, which imply that the initial value agreed can vary upwards or downwards, depending on the real performance of the business plan and the milestones achieved.
The aim is that value is not a problem when it comes to formalising an investment in a company and that it is recognised as the project progresses.
If you need more information on valuing companies the consultants of the IMB financial division can help you. Inquire via email.
What is an Interim management process?
Interim management consists of outsourcing to professionals with extensive experience as company managers (financial, HR, operations…)
Appointing these professionals through an interim management process can meet temporary needs (mergers, restructuring, refloating companies…) or address structural issues (foreign subsidiaries that do not want to have a permanent structure in the country, small businesses with large projects that require experts in a field but part-time or for a few months…)
The interim management process also has the advantage of the fact that behind the professional there is a whole service and control structure, offering a comprehensive service wich, if there is a need to reduce or expand the service or even change the professionals, has a flexibility and dynamism that is difficult to find in the conventional market
Contact us and we will carry out a no-obligation assessment to evaluate how an interim management process could help your company.
What is a partners‘/shareholders’ agreement?
The partners’/shareholders’ agreement is the agreement reached by the main shareholders in a company to consult each other, particularly in cases in which one of them decides to sell their share.
Beyond large corporations, it is an essential instrument that regulates relationships between the instigators, the founders of a business project and the investors that acquire a minority share in the company.
The project itself remains the responsability of the entrepreneurs, but the agreement encompasses matters that must be approved by a supermajority, which gives investors the ability to influence or block decisions that affect strategic aspects of the project, the continuance of entrepreneurs, the partial or total sale of the company, etc.
IMB has a team of lawyers and economists with extensive experience negotiating and drafting shareholders’ agreements. Consult us with no obligation.