When a good business isn’t enough

A promising idea, a valuable piece of land or even a strong product is not always enough to attract capital. Businesses and project developers seeking financing must be able to convince investors that their opportunities can generate sustainable returns while managing the risks that could undermine those prospects.

It is a consideration that Gregory Samuels, senior vice-president and head of investment banking at Sygnus Capital Limited, highlighted during a recent presentation on what makes a business or project bankable, noting that even the term bankable may not fully capture what is required to attract investment.

Many projects require more than conventional bank financing, making it necessary for developers to consider whether their proposals have the structure, financial fundamentals and commercial prospects to attract different forms of capital, Samuels explained.