Investment One Financial Services Limited has underscored the need for Nigerian companies to seek professional advice on their capital structure and available financing options in order to grow their businesses and avoid financial shocks.
At a seminar organised by Investment One Financial Services Limited in partnership with the Network Business Club, experts discussed various ways to attract smart money to grow business. The seminar was directed at different levels of business, ranging from large companies to Small & Medium Enterprises (SMEs) looking to bring their business ideas to reality or scale up their business. The seminar thoroughly examined how to attract smart money and had various speakers who addressed various aspects of the seminar theme.
Managing director, Capital Management Division, Investment One Financial Services Limited, Mr Ademola Aofolaju said companies must realize the importance of correct capital structure for their particular kind of business.
According to him, the proportion of debt to equity may be related to growth potential and cash flow and the varying business needs which may include expansion, working capital and asset acquisition.
He also outlined the detailed requirement for attracting smart money which include the 5Cs of capital, cash flow, character, capacity and collateral, adding that other requirements may include experience, sound operations, financial records, governance structures, compliance and legal structures and market positioning.
In his remarks, managing director, Investment One VenCap, Dr. Ore Sofekun, noted that for Nigeria to achieve the desired economic growth, there must be a shift from being a consuming nation to a producing nation. Investment One VenCap is the private equity and venture capital subsidiary of the financial services group.
She pointed out that for a country with Nigeria’s population size, SMEs is one of the growth engines.
She added that the seminar was held in line with the group’s commitment to providing financial education to both individuals and businesses, helping them to achieve their desired financial goals.
Chairman, Networks Business Club, Mr Ernest Obi, explained that the event was borne out of the identified needs of their members who have businesses at different stages of either inception or growth and for whom financial advice was required to achieve the desired result.
According to him, the objective of the event was to provide business owners with a platform to directly engage investors.