Strategic Financing

Hi Sir

I was just having a think about the sorts of considerations a company/board might make when trying to secure an optimal financing mix for its financing requirements (I’d just attempted a past question: Jones Packaging) and was wondering:

Given that the default position (subject to proper justified reasoning) is that a company requiring finance for a business unit, which could be considered a Question Mark (on the BCG Matrix) would seek out equity finance, from a Business Angel or Venture Capatilist, to avoid the gearing and financial distress risks incumbent with debt – would this still be the case, if the company is an established conglomerate, such as Unilever (just for example), and required external finance due to insufficient reserves?

I suppose what I’m trying to figure out is, would a company, with considerable acquisition and product management expertise and capabilities, still consider a Business Angel capital or venture capital, to support further diversification, when that diversification pertains to a potential Question Mark or is venture capital or capital from a Business Angel only really suitable for a start-up or a company that is in the infancy of its business life cycle AND is not being acquired or launched by an existing company much more advanced along its business life cycle?

Apologies for rambling.

Thank you.