EII Scheme for Companies Seeking Investment
The Employment and Investment Incentive Scheme (“EII Scheme”) is a tax relief incentive scheme which provides all-income tax relief to Qualifying Investors for investments in certain qualifying small and medium sized trading companies (“SMEs”)*.
The EII Scheme facilitates qualifying companies to secure funding at a competitive cost of finance and with no repayment until the end of the four year investment period.
Exceptions apply. For more information, please refer to the Prospectus under the section headed “Relevant Trading Activities” on page 22.
Funding available for Investment in 2016
We are actively seeking suitable SMEs for investment. Investments by the Fund typically range from €500,000 to €2.5 million.
BES Management DAC has successfully raised five EII Scheme Funds over the past five years and over the last 21 years has invested over €154m in over 154 Irish companies. The new rules mean many more companies will qualify for funding than previously with BES, thus the new EII Scheme will allow our team to bring their business management experience to the benefit of an increased potential list of companies.
We encourage any companies meeting the qualifying criteria (as set out below) to consider the benefits that equity funding of this nature could bring to their business.
The Manager will seek to invest in companies with a capable management team and future growth potential. Certain key criteria which may be used by the Manager in assessing potential investee companies include:
- Strong and capable management team;
- 3-5 year strong trading record;
- Future growth potential;
- Low gearing levels;
- Positive net asset value; and
- Prospect for realisation of investment after the 4 year EII Scheme period.
The criteria listed above are not intended to be exhaustive or an exclusive list.
The Manager will exercise its discretion is relation to selecting possible investment companies.
Benefits to the Company
In addition to the cashflow benefit, the EII Scheme may have the following advantages for your company:
- Fixed cost of finance for four years;
- Existing shareholders retain control of the business;
- The investment is equity not debt;
- No capital repayment until the end of the investment period; and
- May trigger Enterprise Ireland or bank funding.