Venturing for growth
A 3i Group case study

Page 1: Introduction

No business could survive on its own without friends and allies. To be successful, businesses need to develop relationships with other organisations and to draw on the support and services they provide. The successful business will develop healthy relationships with suppliers, partners and providers of finance.In this case study, we look at a very important relationship for an increasing number of...
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Page 2: Types of finance

Venture capital is finance, in the form of shares or loans, which is provided by an investment institution to back a business venture which is expected to grow in value. Organisations like 3i are prepared to provide finance for growing small and medium sized companies in exchange for part of the ownership of the business. It often goes well beyond simply providing finance for growing organisations...
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Page 3: Investment

In essence, 3i helps the small and medium sized business sector to play a more dynamic role in the economy by providing the finance that this sector needs to grow more smoothly. Individuals and organisations are able to obtain the finance to become more entrepreneurial, to take appropriate risks and to do the sorts of things they should be able to do in a dynamic economy. Most of the investments...
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Page 4: Long-term approach to investment

What makes 3i different is its approach to business. 3i has a long term approach to investment and offers a distinctive blend of financial and industrial skills. 3i works with the management teams of companies to develop imaginative responses to business opportunities and to share the risks and rewards in achieving them. Investment executives are assisted by a team of specialist industrial...
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Page 5: Buy-out

3i's approach can be illustrated by looking at two case studies. The first of these is the management buy-out (MBO) of Denby Pottery. Wedgwood, Royal Doulton and Denby are internationally famous for traditional English china and pottery. All three were established around two centuries ago, yet all have seen dramatic changes of ownership in the 1980s and 1990s.At Denby, the change process began...
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Page 6: Conclusion

Surrey Envelopes provides us with a good case example of the way in which 3i enables entrepreneurs with good ideas to secure the necessary backing to get started. Surrey Envelopes, based in Wimbledon, supply a range of envelopes that are printed with the clients’ designs - from simple black and white, to full colour. The company began trading in 1991. Today it has a very broad customer...
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