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DILEMMA LARGER FIRMS For those firms that have reached the

17th September 2009
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top of their growth in private hands and have their sights set on being a third-party logistics provider, an equity investor can bridge the gap between private ownership and public flotation.

However, inviting other shareholders in requires a distinct change in mind-set from private ownership. The advantages are that an equity investment firm such as Uoyds Development Capital will do thorough due diligence on your firm. Then, if the senior management are deemed sound, it will put a very experienced new chairman and probably a new business executive onto your board to mentor you through the new statutory demands and governance procedures.

Inviting in an equity partner can provide significant amounts of capital, but you must be prepared for growth, change and a specific point at which your investor will leave. Equity investment is about putting your money in, increasing the value of the business and pulling it out again with a good return.

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