Investment Template

London Capital Finance Ltd., London Capital Investment Partners and LCF Research Ltd. all operate with reference to the Investment Template, which is a qualitiative framework that helps to identify companies with outstanding growth prospects:

Experienced Management

  • A management team including one or more industry relevant senior executives with P&L responsibility in companies whose sales exceeded £10 million, and ideally whose operations were multi-site.

  • A properly structured board that acknowledges its responsibilities to all investors.

Strong Value Proposition
  • Robust intellectual property or know-how.
  • Opportunities to exploit this intellectual property or know-how through multiple commercial applications.
  • A business that satisfies the unmet needs of its customers in economically quantifiable terms – as demonstrated by credibly targeting gross margins of over 50% and operating margins greater than 10%.
  • A business model that can achieve breakeven on annual sales of £3 million.

  • A significant portion of recurring revenues.

Scope for Corporate Development and Exit
  • The potential for scalability in global markets.
  • The prospect of corporate development via bolt on acquisitions and/or corporate venturing.Having from the outset a business strategy that will be attractive to trade buyers and/or investors in the public equity markets