James Henderson on why professional practices make perfect investment opportunities
Recent figures from the UK Government’s Department of Business,
Innovation and Skills show that the professional services sector is
currently worth 11% of the total UK economy and is set to grow at
4% each year until 2021.
In Wales, the £40m Wales SME Investment Fund
enabled Finance Wales to invest in certain sectors of the Welsh
economy, such as professional services, for the first time.
A number of Welsh accountancy, dental and
legal practices as well as estate agencies have all shown interest
in the potential investment opportunities on offer from Finance
In April Finance Wales completed its first
investment in the sector – an MBO of a thriving Welsh dental
practice and since the Fund’s launch we’ve invested over £2m in the
sector through 6 businesses to date.
A reputation for generating stable, long-term revenues
Many of the Welsh professional services
businesses we’ve spoken to are well-established. They’ve built
their reputations over a number of years, have excellent
relationships with their customers and as a result, benefit from
‘reliable’ revenue streams and strong cashflows.
Sector growth - new opportunities
Changes driven by new legislation, cosmetic
procedures or treatment options are opening up potential new
revenue-earning opportunities for businesses in the sector which
could benefit from Finance Wales’ investment.
Succession leads to expansion
Buy outs can often lead to further expansion
and innovation in an established professional practice, perhaps
when a partner in a law firm retires or associates take over an
established dental practice.
Backing your clients
We can invest up to £2m to fund an entire deal
or work with other funders, perhaps to cover vendor valuation
shortfalls, for instance.
Contact us to
find out how we can structure the right investment for your