Investments in companies - 16.11.2009
The limits set for investee companies in government-owned investment company Finnish Industry Investment Ltds new MEUR 100 financing programme for stabilisation have been raised to balance supply and demand. Government guidelines now allow Industry Investment to make stabilisation investments in companies comprising at most 2,000 employees. Previously the limit was one thousand. Correspondingly, the upper limit for an investment by Industry Investment was raised from MEUR 10 to MEUR 15.
That means in particular that growing and internationalising Finnish companies can now participate in stabilisation financing. It is exactly these businesses that have larger numbers of personnel, explains Director Kimmo Viertola from Industry Investment.
The engineering industry and industrial services are particularly prominent sectors at present. Companies typically need stabilisation financing for working capital when sales have dropped but costs cannot be adjusted as quickly. Stability financing enables a company to continue doing business with lower turnover and survive over the recession.
Some 50 companies interested in the stabilisation programme have approached Industry Investment, and approximately one in ten has proceeded to a decision to invest.
Companies keen interest is evidence that Industry Investment has a good product for this market situation. An investment in a company by Industry Investment means that the company can be stabilised and has growth potential when the economic climate changes.
A steady flow of new projects are proposed as stabilisation investment recipients. Companies should contact us in good time for instance, before breaking the terms of a bank loan, reaching negative equity or cash flow becoming critical.
Industry Investment has reserved MEUR 100 for the programme according to government guidelines and plans to invest this capital during 2009-2011. The objectives are 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, and to protect Finnish jobs.
Industry Investment always co-invests with private investors or financiers. The investee company not only receives more capital from investors, but also benefits from investors long and practical experience of growth companies and useful Finnish and international networks of contacts.
- Kimmo Viertola, Director, Finnish Industry Investment Ltd,
tel. +358 50 309 2734, kimmo.viertola (at) industryinvestment.com