Finding small businesses to buy/invest-in

sceach

Frequent Poster
Messages
66
Hi,
I have often thought of investing, or buying into some small businesses. Are there any websites where business owners can be connected with investors?
I am already on linked finance but am looking at this from a different angle.
Thanks
 

Zenith63

Frequent Poster
Messages
458
Some info here - https://www.enterprise-ireland.com/en/Invest-in-Emerging-Companies/Source-of-Private-Capital/Business-Angels-BES,-Angel-Networks-.html

You really want to spread your money around, hoping for say 1 in 10 to be wildly successful while the other 9 either fizzle out or never become sellable. So if you're talking about smaller sums where you cannot put whatever the minimum is (often €25k+) into 10 companies, you could look at an EIIS fund, where the fund organiser invests in a basket of SMEs for diversity and you buy a slice of that. For example - https://www.bdo.ie/en-gb/services/advisory/eii-scheme-funds/eii-scheme-for-investors, https://www.eiismanagement.ie/, https://www.bvp.ie/eii-scheme/eii-tax-relief-scheme-fund/
 

lledlledlled

Frequent Poster
Messages
307
Hi,
I have often thought of investing, or buying into some small businesses. Are there any websites where business owners can be connected with investors?
I am already on linked finance but am looking at this from a different angle.
Thanks
You're either very wise or very crazy! Almost every small business in the country is currently closed, and many may never reopen again. Huge risk involved here, but best of luck!
I do hope you're successful. Small businesses are the lifeblood of the economy, and don't always get the focus they deserve.
 

RedOnion

Frequent Poster
Messages
4,286
Are you talking about a few thousand, or hundreds of thousands?
Do you want a passive investment, or hands-on involvement in running the business?
 

Zenith63

Frequent Poster
Messages
458
You're either very wise or very crazy!
FWIW having raised money for SMEs a number of times, virtually every investor I met came across as well informed, calculated in their decision making and have been through it before and had success. Even as a very small SME you meet partners in legal firms, successful entrepreneurs, retired high net worth individuals etc. EIIS in particular is very tax efficient and based on the kinds of people I was meeting I'd say wisdom rather than craziness/high-risk-appetites reigned. Key though is being able to sniff out spoofers and having the capacity to invest in at least 5-10 opportunities because most will not succeed. I don't think this can be done without €250k+, unless you go into one of the funds I mention above where you get diversity, but returns are also heavily reduced.

Almost every small business in the country is currently closed, and many may never reopen again. Huge risk involved here, but best of luck!
FWIW what I am hearing is that C19 has created two opportunities - distressed businesses that need cash but should survive, and businesses that have had their model proven by the crisis (ie. they're seeing little impact or are actually doing better than before) and are likely to now thrive. Certainly the risk has increased though!
 

sceach

Frequent Poster
Messages
66
Thanks all for your replies. To give a little more context I have worked in large domestic and multinational companies my whole career. I feel like I fell into my career by chance and also feel like I have been very lucky in my career progression and direction. I've always felt that I would like to start a small business and as time went by this fell a little bit off my radar. Right now I am just exploring this as a possibility and all in have approx 150k to invest and would ideally like to spread this over three companies. Like I say, I am only at the early stages and only looking to see what is available.
Depending on how it pans out and the investment I would be willing to be actively involved in running the businesses subject to skills matching.

I am not a mega rich guy, or any sort of business tycoon. I have saved this money through bonuses and salary over a few years. I have got a mortgage and know that paying 150k off it would be the risk free thing to do. This will all come down to risk (which is my profession) and I will not rush into any decision.
 

SBarrett

Frequent Poster
Messages
3,340
As Zenith said, the EIIS schemes are very tax efficient. They usually come out in September/ October and there are usually loads of them (who knows this year). Davy's one is like a fund so you get to invest in a number of different companies and Davy do the due diligence so you don't have to.


Steven
www.bluewaterfp.ie
 

peemac

Frequent Poster
Messages
719
You're either very wise or very crazy! Almost every small business in the country is currently closed, and many may never reopen again. Huge risk involved here, but best of luck!
I do hope you're successful. Small businesses are the lifeblood of the economy, and don't always get the focus they deserve.
Plenty of small business open and doing well. (I'll say nothing :) )
For those that are closed, there are substantial supports.

But what I'd be looking at is opportunities for new businesses when things are more settled. In a way it's taking advantage of the virus, but there will be many really good businesses that will unfortunately fail. This allows for someone else, possibly in conjunction with the previous owner, to start again.
A classic example is a good hair salon.

So, plenty of opportunity will come, but I'd hang on the sidelines for now.
 

Leper

Frequent Poster
Messages
1,136
Thanks all for your replies. To give a little more context I have worked in large domestic and multinational companies my whole career. I feel like I fell into my career by chance and also feel like I have been very lucky in my career progression and direction. I've always felt that I would like to start a small business and as time went by this fell a little bit off my radar. Right now I am just exploring this as a possibility and all in have approx 150k to invest and would ideally like to spread this over three companies. Like I say, I am only at the early stages and only looking to see what is available.
Depending on how it pans out and the investment I would be willing to be actively involved in running the businesses subject to skills matching.

I am not a mega rich guy, or any sort of business tycoon. I have saved this money through bonuses and salary over a few years. I have got a mortgage and know that paying 150k off it would be the risk free thing to do. This will all come down to risk (which is my profession) and I will not rush into any decision.
As they say in GAA terms "Why change a winning team?" - Keep doing what you do and know. Why risk your money, sanity, life at this stage?
If you have spare time on hands take up golf or portrait painting. Remember the contents of your next phone call have the potential to change your life completely.
 

cousin_borat

Frequent Poster
Messages
90
sceach Maybe HBAN is worth a look. They have sector specific investors syndicates such as for MedTech, so if you're interested in, or would like to offer "smart money" with knowledge/contacts from your industry vertical this is even better.
 

sceach

Frequent Poster
Messages
66
sceach Maybe HBAN is worth a look. They have sector specific investors syndicates such as for MedTech, so if you're interested in, or would like to offer "smart money" with knowledge/contacts from your industry vertical this is even better.
Thanks very much cousin_borat. Or should I say "very niiiice" :)
 
Top