Investments in companies - 3.8.2009
Industry Investment has launched a special financing programme for stabilisation. In addition to normal investment targets, the programme has the following objectives:
- to safeguard the operations of viable companies that have encountered temporary difficulties as a result of the general economic downturn
- to promote the corporate and sectoral restructuring needed in Finland
- to protect Finnish jobs
Industry Investment has reserved MEUR 100 for the program according to government guidelines and plans to invest this capital during 2009-2011.
Contact us > M&A, Buyouts
A proposal for a prospective stabilisation investment can be made to Industry Investment by the company itself or by a co-investor i.e. a private investor, bank, pension fund or private equity investment firm known to the company. You are encouraged to contact our investment professionals early to allow adequate time for analysing the investment, setting the terms for the investment, and implementing the investment.
An investee company:
- is growth-oriented
- is not in debt restructuring or bankruptcy
- is prepared to refocuse and revitalise its operations
- can operate in different sectors
- generates turnover of at least MEUR 10
- has less than 1000 personnel at the time of investment
The criteriafor Industry Investment in making a stabilisation investment are as follows.
- The investee companys business operations were previously profitable, and future profitability is still feasible.
- Cooperation with the investee companys current owners, management and debt financing providers.
- A private investor and/or private financier will provide at least one-half of the financing needed.
- The investments will typically be either equity investments or debt financing
- The investee companys owners will make a new investment or, alternatively, a new external investor may become involved.
- To spread risks, Industry Investments share of an individual investment will be MEUR 1-10.
- The financing is used for investments or for the companys working capital.
After the investment
The companys management, owners and financiers cooperate to systematically develop the companys business operations. Investors can contribute their own business expertise actively on the board of directors and, if necessary, can lease managers. Investors are generally involved in the company for some years, after which an exit is jointly agreed with the owners.