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The Goodbody EIIS Funds: Open for Business

Baker Tilly Hughes Blake are delighted to announce, the Goodbody 2017 EIIS Fund has recently raised €11m for investment in Irish SMEs. Through our joint venture with Goodbody Stockbrokers, Baker Tilly Hughes Blake now have €29m under management across three EIIS Funds.

As a quick reminder, the Employment and Investment Incentive Scheme, or “EIIS” offers Irish resident investors income tax relief of up to 40% on their investment in the Fund. With very few tax reliefs remaining for Irish tax payers, an EIIS investment should be considered by more people as part of their annual tax reduction strategy.

Seeking Companies

The Fund is actively seeking to invest in growing Irish companies that are planning to expand their business in 2018. The Fund can invest anywhere between €500k and €5m in any 12 months. Investments are for four years and the cost of funds typically range between 6% and 10% per annum.

We are looking to invest in companies with some or all of the following characteristics:

  • Credible management team and promoters
  • 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 our Investors after 4 years

Does my Company qualify for EIIS investment?

While the scheme has become more complicated over the past number of years, the EIIS team in Baker Tilly can guide you through the process of determining if your Company is an EIIS qualifying company.

Key to the process will be the Company’s business plan. The EIIS rules require the Company to have a viable business plan which includes, in as much detail as possible, the Company’s present and future funding needs using EIIS investment.

This plan will be submitted to the Revenue when making an EIIS application and failure to include the Company’s present and future funding needs could result in EIIS relief being rejected or withdrawn.

This is a reasonably new requirement which was introduced to bring the scheme in compliance with EU state aid rules. The requirement has already caught out a large number of companies and we believe it will continue to do so.

Contact me at mark.richardson@bakertillyhb.ie if you would like to discuss in more detail.