From the beginning LDC made it clear to us that they wanted to back a management team and allow that team to run the business. They were true to their word.”
What does LDC look for in a successful development capital investment?
When it comes to investing in businesses with development capital, LDC takes into account a number of different factors.
Firstly, we check whether the business has a consistent track record of delivering growth. This assures us that the business and its management team can deliver on future growth, if supported by a capital investment.
Profitability, stable cashflow and strong sales also assure us that a business is in good health. Companies that are able to demonstrate these through figures and accounts generally make for a compelling investment.
Perhaps most essential is a strong set of forecasts that show us where the business will aim to grow in the future. The management team should be able to confidently look ahead and make calculated plans based on past performance, also considering any potential roadblocks. It’s also important to have an awareness of the level of partnership and support you will require alongside the capital investment from LDC.