Investing In EIS

Choosing an appropriate EIS investment can be a difficult process. By their very nature, EIS investments are illiquid, and generally are perceived to be high risk. Accordingly, it is important that you complete detailed due diligence on the respective opportunity to make sure that you have the best possible chance of achieving the target return. To complete this due diligence, you will want to know answers to the following: - who are the management team - track record of management team - what is their experience within the proposed sector - does the business model have the potential to achieve the projected returns - are the projected returns realistic - are there are any regulatory hurdles - has the company/fund received advance assurance (pre approval) from HMRC - how have similar companies performed in the past Also, there will lots more questions which you should get answers to, including, what's the proposed investment term? What's the exit strategy? Can you see the cash flow model that the returns are based upon? What assumptions are incorporated into these returns? By going through this process, you will be making sure that the opportunities that you do look at will have at least some potential. It is always recommended that you seek professional advice if you are considering investing in EIS. Visit our website for further details, available investment opportunities, and advice and legislative information at http://www.enterpriseinvestmentschemes.co.uk