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Case Studies
A £200k
turnover social enterprise providing home-based respite care
to families with children with disabilities with offers of
government contracts to extend service to residential respite
care. The enterprise needs to buy a property costing £1.5-2m.
Obtaining grant funding would take approximately 5 years
resulting in a loss of business opportunity and given a turnover
of only £200k at present, the enterprise would struggle
to obtain debt finance. Through Equity Plus an investor or
group of investors would buy the property which they will
own and lease it to the organisation for an agreed price.
This will enable the enterprise to expand considerably and
increase their trading to over £1m within five years.
At this point the organisation would be able to offer investors
an exit buy obtaining a commercial mortgage for the property.
An
environmental social enterprise using proven technology to
generate renewable energy has an initial investment need
of £600k to fund start-up stage of business over next
two years. Following this the business will raise £2m
from capital markets to fund a rapid expansion programme.
Shares owned by angel investors could be sold at this stage.
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