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.