Alternative Capital for SMEs. Investment opportunities for SMSF
Invest in Australia VISA 188 | Unlisted Australian Companies | Debt Equity to $10 million
Are you looking for non-bank and alternative channels of raising capital and funding for your business growth?
Opportunities for Business Innovation and Investment into profitable Australian companies seeking joint venture partners, acquisition or alternative capital for international expansion
Alternative Capital Investment Opportunities
Contact Accrutus Capital +61 2 9006 1327 to discuss your interest in these opportunities
Alternative Capital and Investment Trends
- Business Innovation and Investment have emerged over the last decade in the wake of the GFC and tightening of bank lending to small business.
- Advances in technology and the universal development of mobile apps have enabled ‘Fintech’ origination have opened up global access to alternative capital.
- Global growth in entrepreneurship, its eco-systems and governments embracing business innovation and investment have seen a huge demand for alternative capital.
- Companies are choosing to remain private longer before listing publicly. The global rise of the ‘unicorn’ where private VC-backed companies valued at $1 billion+.
- Private investors willing to take higher risks to secure higher returns. Online access to global markets and corporations allow a spread of risk.
- Marketplace lending offers a new wave of non-bank, tech focused short-term loans to business and consumers clients. Unsecured business loans, merchant cash advances and invoice trading have seen massive growth over the last decade.
- The fundamental driver has been a decline in bank lending to SME’s, triggered by the GFC and increased regulatory banking requirements to hold more cash.
- Global regulators have slowly ‘come around’ to meet the demand for new sources of alternative capital via online crowdfunding and marketplace platforms.
- Emerging markets such as China and India are new hubs for global venture capital, Hence, the Australian governments Business Innovations and Investment VISA 188 (subclass) program facilitates the flow of foreign alternative capital. China is the world’s largest online alternative capital market, registering $101.7 billion (or RMB 638.79 billion) in 2015. This represents almost 99% of the total volume in the Asia Pacific region.
Acquiring a business is a long and complex process. It is important to conduct a thorough due diligence investigation to identify any potential issues or deal killers. For the vendor company it is vital that potential acquisition candidates align with your company values and expansion plans. For the buyer or investor it is important that management’s vision, valuations and exit strategies align with your investment criteria. Here are the key working points to commence your due diligence for a successful deal;
- Background information on the owners and the management team, and identify any gaps in skills
- The asking price versus the PE multiples and valuation methods adopted that determine the final selling price
- Products and services offered, the revenue spread and how this aligns with other competing in the same market
- Look for business innovation and investment trends in your preferred industry, consider compliance and ASIC regulations
- How intense is the competitive landscape and the barriers-to-entry for any new entrants
- Review the strengths, weaknesses, opportunities and threats to the business and how you can mitigate them
- Thoroughly review the financials over the last 5 years, identify revenue trends and profit margins
- Check inventory, stock write-offs, out-dated equipment or major infrastructure needed to maintain a competitive edge
How does Alternative Capital work?
Get in touch with us via this page or call to discuss your alternative capital fees and requirements
Send us your Pitch deck or IM for evaluation and pre-approval to secure equity or debt finance.
Discuss qualifying criteria and options for alternative capital or investment relevant to risk and appetite.
Review of company, financials, terms, pricing, security offered if required.
Review finance proposal with offer, terms and conditions for acceptance.
Finance settlement or execution of SME Bond. Registration of security if required.