Panoramic Private Float provides owner managers with ‘cash and control’; cash to diversify their personal wealth, whilst retaining control to grow their business further.
Designed for those who are too young to retire and believe there is more to come but wish to de-risk personally.
Private Float is a new and innovative product that follows Panoramic’s track record of investing in equity release opportunities.
How it Works
Private Float means investing between £1m – £5m into owner manged businesses in any sector, across the UK. The business owner can also tax efficiently extract ‘free cash’ on the balance sheet at the same time.
Panoramic’s investment is made using a combination of debt (provided by Panoramic) and equity. The mix is determined together with the owner after understanding what works best for the company. The equity gives Panoramic a minority stake and the loan note has a 5 year term with repayments to suit the company.
It is important to reiterate that we are backing management and do not change things post-investment. We provide support and experience in areas that we are knowledgeable and we all work together to achieve a larger sale price down the road.
Panoramic’s investment can be all cash-out or part cash-out/part growth funding depending on what the company is looking for.
There are a variety of ways that an eventual exit can be achieved including:
- Together with the owner in a full business sale
- Buying out Panoramic’s shareholding with bank debt
- Larger PE house or strategic investor buys Panoramic’s share and the owner continues to grow the business further
The criteria for Private Float is:
- EBITDA over £750k, preferably £1m+
- Panoramic invest between £1m – £5m
- Track record of company profitability and consistent cash flows
- Flexible model on remuneration – salary plus bonus for enhanced performance
- Cash out of up to 50% but PGE hold a minority stake post transaction
Advantages to the Business Owner
Many entrepreneurs are too young to retire or do not want to. Private Float enables owner managers to keep running their business and take a salary whilst de-risking their personal wealth. Additional benefits include:
- Increase the owner’s relative stake by using debt. For example, an owner may receive 40% of company worth but still own 70% of the shares
- Unlike public flotation, no risk of losing control and no public scrutiny
- Discreet transaction – owner determines the extent to which transaction is publicly disclosed
- Reduce potential Capital Gains Tax bill by selling part now – before rates rise
- Reduce the Company’s Corporate Tax bill through use of modest debt
Panoramic also bring extensive experience, contacts, and expertise – with decades of investing into small and medium sized businesses. The support and expertise we bring aims to maximise financial returns from an eventual exit.
Advantages to the Introducer
Why would an introducer recommend a Private Float to Panoramic rather than target a trade sale? Most importantly, it can be the best option for your client, particularly if they believe in the future of the business.
Secondly, we work alongside advisors so they can share in the upside in the future. The transaction may offer the opportunity to be involved with the company twice – a fee for this investment and a fee for advising on the eventual sale, or even receive a stake in the business.
With a small partner led team and no external investment committee, Panoramic takes decisions and moves quickly. We can assess whether a business meets our investment criteria on basic financial information.
The process from there is a video or face to face meeting with our investment team, followed by a term sheet and into diligence.
If Private Float sounds interesting to you as a business owner or, as an advisor, to your clients – we would love to hear from you.
Please get in touch using our team email, where you will receive a fast response:
Or contact one of the investment team directly.