FINANCING
BUSINESS GROWTH

Do you require a minimum of £2m financing to grow your business? Our financing business growth advisory service focuses on articulating your growth plan to generate funder interest and confidence. Our corporate finance expertise spans debt, equity and everything in between. Put simply, we present your growth plan to the right funders, in the right way and negotiate the best terms for you, giving you the best chance to scale your operations.

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TRUSTED BY businesses across the UK

WHAT IS BUSINESS GROWTH FINANCING?

Business growth financing is sought for the specific purpose of expanding a business. Whether it’s used for scaling production, making a large advanced order, or something else, growth financing can help strengthen your competitive advantage. But the process to secure growth financing can be time consuming, stressful and costly if you don’t know what you’re doing.

WHO DO WE WORK WITH?

We work with ambitious businesses that require in excess of £2m to finance a growth project. Typical projects could be anything from R&D, product development and new facilities, to plant, property or personnel. Our clients’ needs will typically be for sophisticated growth financing products such as cash flow based lending or private equity investments. Our value lies in helping clients access funding that relies on funder confidence in future trading opportunities and cashflows.

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GROWTH FINANCING – HOW BUSINESSES GET IT WRONG

We can confidently say that every client we engage is unprepared in terms of taking their business growth proposal to funders. Being unprepared for funder scrutiny can significantly reduce, or entirely remove, your chances of getting the financing to deliver a growth project. Remember: first impressions count.

The typical things that can erode funder confidence and jeopardise your chances of securing growth financing include:

  • Failure to explain your business model or growth strategy;
  • Poor articulation of your value proposition and value drivers;
  • Inconsistent, incoherent or incomplete financial information;
  • Weak financial modelling and incomplete forecasts;
  • Presenting a biased view of existing business performance and risks;
  • Financing proposals that exclude the critical information that lenders expect to see.

GROWTH FINANCING – HOW TO DO IT RIGHT

To successfully secure financing for a major growth project, you need to achieve four fundamental objectives:

  1. Create a robust business plan that stands up to funder scrutiny.
  2. Articulate that plan in a balanced and coherent way that funders can understand.
  3. Approach the right partners to fund your plan as part of a competitive process.
  4. Defend value in due diligence and close your transaction professionally.

Funders need to have confidence in you and your business from the beginning to the end of the process. First impressions matter and you must never approach the funding market until you are truly ready to commit to the growth project. We can help you get ‘market-ready’ to deliver funder confidence and secure the financing you need to make your growth happen.

FINANCING BUSINESS GROWTH ADVICE & SERVICES

Our business growth funding specialists add value by challenging your business growth plan and optimising your financing proposal before you take it to the funding market. We generate funder confidence to give you the best chance of making your growth project happen. This is what our financing business growth advisory service provides:

EVALAUTE YOUR USP

We add further value by evaluating your USP and identifying what truly contributes to your overall competitive advantage. We'll help you articulate what makes your business model robust and scalable.

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CREATING THE RIGHT INVESTMENT PITCH

If your growth project is fundable, we will deliver funder confidence by drafting a funding proposal that presents your business in its best light, and in a balanced and professional way. It will answer critical funding questions and leave a positive lasting impression of your business.

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KEEPING YOU INFORMED

We deliver confidence by keeping you informed at every stage of the financing process. We’ll also provide transparency by advising what impact each funding package will have on your business. Our process allows you to make an informed business decision on what growth funding solution to go for

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MANAGING FUNDER DUE DILIGENCE

We add further confidence and value by managing the funder’s due diligence process on your business. We will save you significant time by helping you answer the funder’s questions in the right way.

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ADDITIONAL BENEFITS OF USING SHAW & CO

MARKET INDEPENDENCE

We’re 100% independent of any funder. Unlike brokers, we are not tied to certain funders or products. Neither do we accept commissions which create conflicts of interest. We leverage our independence to get you the best deal. Let us deliver confidence.

RIGHT FIRST TIME

We save you considerable distraction advising you on exactly what funders need and how their requirements change. Don’t risk a funding rejection by guessing how to create a funding proposal. Let us show you the way.

SAVING TIME & STRESS

We work with the funding market on a daily basis. We save you considerable time knowing who to approach and what they need to see as well as knowing current market rates and practices. Let us add exceptional value.

RELATED AREAS OF EXPERTISE

FAQS

Do you accept non-UK clients?

No - We work exclusively with UK-based SMEs and small cap PLCs. However, our clients often have international activities and we regularly transact with overseas buyers and investors or arrange overseas acquisitions on behalf of our UK clients.

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What type of funding can you help me access?

We pride ourselves on understanding the requirements of, and having access to, funders in both the debt and private equity markets for funding in the range of £2m to £100m. Our team actively maps the ever-evolving funding market to give you confidence that all suitable options are being considered on your behalf. Our aim is to provide you an ‘all of market’ appraisal of your options.

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Should I use debt funding or equity funding?

That very much depends on your funding proposal. A huge benefit of working with Shaw & Co is that we do not have any bias towards a given lender, investor or type of funding, and we have the breath of expertise to advise across both debt and equity products. Both debt and equity have pros and cons, so our team can talk you through each so that you can make an informed decision and find the right solution.

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Wouldn’t funders prefer that businesses approach them directly?

No. Funders appreciate a robust proposal and opportunity that has been thoroughly prepared and which they can engage with. They get frustrated by poorly prepared approaches and having to waste precious time coaching businesses on the information they need. Although funders will know that they are in a competitive process when receiving a proposal from Shaw & Co, they would much prefer this approach rather than dealing with ill prepared applications and patchy information. We give funders confidence that the information they are assessing is saving them both time and money - and by doing some of their work for them, we are able to negotiate lower arrangement fees.

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Do I have any say on which funders Shaw & Co approach to secure business funding?

Yes, of course. We work with you to agree which funders we will approach and discuss with you why we think that they will be good for your business. You ultimately decide the preferred funder to work with (or any to avoid!).

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When Shaw & Co is involved, will I lose control over the process?

Certainly not! When arranging your business funding, we are careful to agree how the process will be run, what the timescales are, which funders we will approach, and what outcome we are looking to achieve. From then on, we will we keep you informed every step of the way.

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How do you get paid?

We are remunerated only by our clients (not the funders). Our fees are predominantly 'Success Fees’, meaning that we get paid on completion of the deal. We take great care to make sure our fees are aligned with your goals, and we take pride in our fees always being a proportion of the value we add. We do also ask for a 'Commitment Fee' on all transactions which is calculated as a modest percentage of the expected ‘Success Fee’. Everything we may receive on a transaction is completely transparent to our clients.

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Does Shaw & Co accept arrangement fees from funders?

No, because we think that it is wrong. Some funders, particularly debt lenders, typically pay a referral fee to third parties for introducing a borrower and the client has no control over these arrangements. We believe this creates a conflict of interest and puts any client at a disadvantage, because any third party whose business is based on receiving a referral fee will be incentivised to ‘recommend’ the offers that earn them the biggest fees, rather than that which is best for the client. Furthermore, nothing is ever free. A referral fee paid by a lender to an introducer still comes out of the borrower’s pocket because the lender adds the referral fee onto the lending fee it charges for agreeing the facility. The lender and the introducer are in fact working against the client. If we are offered a referral fee, we either ask the lender to net it off the arrangement fees, or we pay that fee straight through to our client to make sure the client benefits, not us.

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Is Shaw & Co an expensive luxury when it comes to raising finance?

Absolutely not! Here is a reminder of what we do for you: We optimise your proposal, your financial model and articulate your USPs. Very few, if any, businesses are ready to, or know how to, approach a provider of finance. We approach the right funders in the right way on your behalf. By offering a professional, well thought through, easy to engage with proposal to funders, we create interest and run a competitive process which reduces funding costs. We can help to negotiate the entire package on your behalf, not just the price. There is so much more to an offer than the headlines. All this results in three benefits for you 1) a higher chance of securing the funding you need; 2) We can save you money by driving down funding costs, and 3) peace of mind that you have secured the right funding for your business.

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Are you sector specialists?

We have specific sector knowledge derived from many years of collective deal making experience. However, we pride ourselves on the diversity of sectors we work with which challenges us to think creatively. This creative and challenging approach brings huge value to our clients when helping them to build robust business cases.

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LEARN MORE ABOUT SHAW & CO

Why Shaw & Co

WE ONLY SUCCEED WHEN YOU DO

Our highly talented people are creative, innovative and thrive when faced with a deal-making challenge. It's no surprise that we make deals happen and turn your ambition into a greater outcome.

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Fees & charges

COMPLETELY TRANSPARENT & ALIGNed With your GOALs

Our objective is to ensure that our fee more than pays for itself from the value we create for you and your business.

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We put you first

One of our six promises is to do the right thing and put your interests before ours. We work harder to achieve the best deal for you and your business.

"At every step of the journey, through the build up to our sale, and in the subsequent acquisition by Unilever, Shaw & Co worked with us to protect and champion Pukka’s values and mission. They have helped us find the right home in Unilever, and to create an exciting future for Pukka Herbs."

Tim Westwell, Co-Founder & CEO at Pukka Herbs

HELPFUL RESOURCES

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July 14, 2022

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June 29, 2022

Experts Guide To Getting Growth Funding

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March 8, 2022

Opportunities for Entrepreneurs?

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February 9, 2022

I want to sell my business and have a good idea of how much it’s worth. How can I validate this?

One of the first things you can do is have a look at what is going on in your sector in the marketplace. You can easily find out in the trade press what deals have been done and how much businesses are sold for. What is really helpful is to have a good sense of where your business is going. Having a business plan in place with a robust 2-3 year forecast so you can see where your business fits into the market.

So where in the press can I find my competitors values?

Sometimes you can find trade values in news releases, or trade publications such as Insider Magazine, or Business Leader. You will often find deals published on the websites of law firms and corporate finance companies in a ‘tombstone’ or case study format. Quite often for small non-publicly listed companies you may not see the trade price published. This may be due to commercial sensitivities and clauses are often inserted into the deal contract to omit mention of value. You may have to look at larger companies in your sector and apply an appropriate discount factor. However, it’s
not as simple as saying “company X is ten times bigger than mine, so I’ll get a tenth of that price”.

I want to sell my business and have a good idea of how much it’s worth. How can I validate this?

One of the first things you can do is have a look at what is going on in your sector in the marketplace. You can easily find out in the trade press what deals have been done and how much businesses are sold for. What is really helpful is to have a good sense of where your business is going. Having a business plan in place with a robust 2-3 year forecast so you can see where your business fits into the market.

How can I value my intangible assets such as trademarks, brand, customer loyalty?

These are tricky to place a value on. When it comes to a sales process they are not likely to have a specific value attributed to them. Instead, a higher multiple may be applied to whatever valuation metric is being used e.g. revenue or EBITDA. So if you have a really strong brand presence and good customer loyalty you will attract a higher premium. Where it’s not a premium is areas such as
trademarks and IP ownership. These are often seen as a hygiene factor for your business - a need to have - so if you don’t have these in place, this would detract from the value rather than adding value.