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Private Equity portfolios are grown on a wide mix of principles. Whether you are purchasing small / medium sized firms, growing larger firms through acquisition or through an industry specific strategy designed to bring value to your investments.
PE is a fast-paced world and you as a PE investor simply may not have the time to consider added value opportunities beyond what is fundamentally in your Firm’s acquisition or turnaround mandate.
Additionally you may also be aware that the grants and R&D ecosystem in many jurisdictions is setup in a way to disadvantage PE firms which usually take a significant stake in portfolio companies and are then fall under “large company rules” which reduce the R&D tax credit opportunity.
The Change has strategies to navigate these hurdles to ensure your portfolio companies gain significant benefit from innovation grants, tax credits and other forms of stimulus so as to encourage your investees to grow effectively through non-debt & non-dilutive stimulus.
Whether you are attempting to purchase 3+ firms a year against an exit Strategy of 5 or whether you are adding value through a clear digitisation strategy The Change can lead the way for each of your investments ensuring you don’t miss the opportunities inherent in innovation.
Existing portfolio companies and future acquisitions may indeed have opportunities which remain unclaimed and where this is the case we will find the best way for you to do this, while also adding value through a deep dive into the technologies, intellectual property and processes of companies so as to unlock new value within your portfolio.
1. Future Investments
When assessing new investment opportunities, in our experience it is helpful to know in advance if there is a future or perhaps historic R&D claim available and to get an understanding of the scale of that. This strategic planning is a very valuable resource.
We often help PE firms where significant money has been left on the table, or sometimes importantly don’t fully understand the full cash implications of claimed and unclaimed R&D. An recent example client was a PE Firm acquiring a software company which had a potential unclaimed £3.5 Million claim, enabling the PE Firm to understand the value of their acquisition, with the claim applied for post-acquisition adding significant value to the portfolio and the company itself.