INVESTEE COMPANIES

Advantages of BES investment for Investee Companies

The extension to the Business Expansion Scheme (BES) under the 2007 Finance Act approved by the European Commission enables qualifying companies to raise up to €2,000,000 in equity funding, subject to a maximum of €1,500,000 in any one twelve month period.

BES funding enables qualifying companies to obtain unsecured funding at a competitive cost of finance and with no repayments due until after the five year investment period.

The existing shareholders retain control of the business.

The buy-out is capped at a figure which equates to a cost of funds of 5%.

The real cost of funds (including all costs) is c.5% p.a.

For these qualifying companies BES equity may also enhance the potential for additional funding as the investment is equity and not secured debt and therefore improves gearing.

Why Pinnacle Capital Partners?

The directors of Pinnacle Capital Partners Ltd are all partners of Horwath Bastow Charleton and are experienced in all aspects of BES investments.

Horwath Bastow Charleton in Limerick has been involved in a significant number of BES investment transactions – both by way of private placings and fund investments. Collectively the expert team has raised, invested and advised on over 45 BES investment transactions with an aggregate value in excess of €48 million. Investments in companies such as Cygnum Ltd. and Ballineen Fine Foods Ltd have all proven successful for the advisory firm, the investors and the investee companies.

HBC in Limerick, have been responsible for leading the structuring, negotiation and promotion of approximately 100 tax-based investments, worth over €750 million, across seed capital, urban-renewal, healthcare, nursing homes, hotels, car parks, double rent structures, and pension-"wrapping" amongst others.

Click here for information on Qualifying Company requirements, Qualifying Trades and how BES Investment Equity is used