Do you have a fast growing company in Turkey and are you looking for an external investment to grow your company? Many companies grow well but have a need for cash for all kind of reasons. A company sometimes needs financing in order to grow it’s working capital. This can be the case if the business starts selling to more new customers. Another reason for an investor can be if you need to invest large amounts in fixed assets like machines, equipment or in other investments. Companies can also need funding to grow their international sales network in Europe or somewhere else across the globe.
The strength of the Corporate Finance in Europe team is the combination of in depth knowledge of the financing requirements of businesses combined with geographical knowledge of Turkey including speaking the local language. Your company needs to have a minimum of 5m Euro revenue in order to be a possible candidate for a capital raise from investors. An exception is if you are in IT or have high innovative products.
The financial investors we work with invest in the equity of a company by extending the share capital. These funds are being used to grow the company. In principle it is not a sale of shares where the owner sells the shares and gets the proceeds for him or herself. The starting point is really to do an investment to help grow the company. If you are interested we can also help you to sell shares of your company. In that case please check sell a business in Turkey. Bank funding provides debt compared to the investments that provide equity to a company. We do help to organize bank funding for larger companies (10m Euro revenue minimum) but our main objective is to bring you financial investors that invest in your share capital. Below we describe some reasons why it can be interesting for you to get a financial investor on board of your company.
Do you have a good company and product and want to sell outside of Turkey? If you have a good position in the Turkish market and want to start selling abroad this can be costly. You need to hire people, set up a sales network, fund a lot upfront as payment terms maybe longer. It takes some time before you settle well into the international markets. Getting financing via a financial investor can be a good alternative to get financial support and business knowledge to grow in the international markets.
Are working capital requirements an issue when growing your business? If your business is growing quickly you need additional working capital. Your debtors position becomes larger and maybe you have more inventories. When you are growing you always need some additional cash to manage this growth. If you keep on having issues with managing your working capital and the banks don’t want to lend you money or it is too expensive we can help you look at solutions where an investors acquires a part of the shares of your company. You use the cash proceeds to improve your working capital position and grow your company again without having working capital issues.
Sometimes you want to invest heavily in machines, new equipment or other fixed assets as you see new growth opportunities for your company. However, before being able to realize these growth and sales opportunities you will first need the new machines which is a large investment. If your bank can not provide you debt it can be an opportunity to get a strong financial investor on board to improve your equity position. The investor buys part of your shares which helps you to leverage this investment and get additional bank funding to grow your business further.