Background: A recently established and trading home shopping business is seeking to raise equity finance in order to accelerate growth and provide a complete “home shopping business solution” to an existing and potential customer base.
The management team are very experienced in their own fields within the sector and have combined to bring the product offering together. The growth strategy involves a small acquisition which has already been identified and which can be acquired for equity in the company.
The business is targeting an operating profit of £700k in its second year of trading, based on sales of £4.9m at a gross margin of 24%.
Opportunity: Investment of £500k is sought.