Information for Companies Seeking Investment

The Employment and Investment Incentive Scheme (“EII Scheme”) is a tax relief incentive scheme which provides tax relief to eligible Investors for investments in certain qualifying small and medium sized trading companies (“SMEs”).

The scheme can assist qualifying companies to secure funding at competitive rates and with no repayment required until the end of the four year investment holding period. Companies can raise up to €5m in EIIS funding in any 12 months and up to €15m in the company’s lifetime.

€10m Funding Available For 2017

The Goodbody 2016 EIIS Fund is seeking good quality Irish SMEs to invest on reasonable terms in 2017.

The Fund will invest in qualifying companies:

• A minimum of €500,000 and up to €5m in any one year with possible follow-on investments in subsequent years.
• Investments are for 4 years and the returns are often capped.
• The cost of capital typically ranges from 6% to 10%.

To qualify, an investee company must ensure that employment levels and average pay are increased over the period of the investment.

Most SME companies qualify for EIIS investment but specifically excluded are financing, property development, forestry, shipping and film production companies.

SMEs are defined as having less than 250 employees and turnover less than €50m or gross assets of less than €43m.

Our Investment Criteria

The Fund seeks to invest in companies with some or all of the following characteristics:

• Credible management team and promotors
• Good track record & potential for growth
• Branded products or services
• Operating in profitable industries
• Good cash flow characteristics
• Realistic possibility of providing an exit for Investors after 4 years
• Low debt levels

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:

• Low cost of finance for the term of the investment
• Promoters can retain ownership and control of the business
• Classed as an equity investment not debt
• Investment repayment not required until at least 4 years after commencement
• Could open up other funding opportunities

Investments to date

In 2016 we invested in the following companies:

• Intact Software – an ERP software company with operations in Dundalk and the UK;
• Barberstown Castle – a hotel with a strong wedding and conference trade looking to enhance its facilities;
• McArdle Skeath – a supply chain management company looking to expand its operations;
• Sunhill Nursing – a group of two nursing homes planning to add an additional 22 beds to one nursing home; and
• PJ Rigney Distillery – a rapidly growing distillery with ambitious plans for expansion and export growth.

If your business is planning on expanding over the coming years and you would like to find out how EIIS can help fund that growth then please give us a call.