Corporate Finance is nothing more complicated than ‘funding for business’ (as opposed to people, governments or charities). At its heart, there are two types of finance:

Debt - which has to be repaid

Equity - which describes the permanent funding of a business.

Debt and equity come in a variety of different forms - ranging from the ‘plain vanilla’ to complex financial instruments - but both debt and equity investors will want something back for their money. Debt investors want to be sure that their loans will be repaid and want to earn interest on their loans, while equity investors look for a combination of dividend income and capital appreciation (ie, their share of the increase in value of the business they invest in).

How can COLOBUS help?

Good Corporate Finance advice is about identifying your requirements and sourcing the right package of finance to meet those needs.

Corporate finance clients very often ask: “If I have a profitable business and strong growth, why do I need to pay for advice when there are people out there looking for investment opportunities?” It’s a good question and it’s the right thing to ask because your business needs the right type of finance and, if this is coming from outside investors, they need to be the right people - ie, people you can work with after the deal is done. The terms must be right for you; headline rates of interest or percentages of shares are not usually the issues - almost always it is the detail that causes problems after closure of a deal. Professional investors make their profits through canny investments; they know how to value investments and how to profit from them. This is their bread and butter; if it’s not yours too then you need expert help.