Private Equity And IPO Advisory
Private Equity is generally the first form of any external equity raising endeavor in any business. The business gets benefitted from a higher scale of operations even without diluting a substantial portion of equity and thereby help in achieving an even higher valuation at the time of IPO.
The existence of Private Equity in any company endorses the company’s financials and working in the minds of public investors at large and thereby they feel much confident to apply for their Equity Offering in a time of IPO. The Merchant Bankers finds themselves in a comfortable position to market the IPO offering of the entities backed with PE Placement.
We at Capital Tree are fully equipped to act as a Transaction Advisor and Intermediary to play the vital role in securing the PE placement in a right scenario in accordance with the aspirations of PE investor and the company.
Different Conflicting Aspirations of PE Investor
|Private Equity Investors||Promoters|
|• Invest in “safe”/”known” business models
• Liquidity event: When can the company IPO?
– Size of offering at IPO implies size/growth rate
• Assuring returns of 25-35%
• How will the company use the funds?
|• Do we need the money. If yes, its quantum and Proposed Dilution
• Does the PE understand my business model?
• Prepare for IPO: will it help me get the right valuation?
• Can the business grow using the much advertised PE network?
• Benchmark valuation:
– Creates confidence in the stock options
– Inorganic growth
In addition to any other specific professional work that may be desired from compliance and finance point of view, the following are the specific value additions wherein we may bring tangible value addition in your PE Fund raising.
- Planning, & Implementing an overall corporate re-structuring targeted to aim the maximization of returns to the stakeholders
- Corporate Re-structuring through Mergers / De-Merger / Consolidation of All Functional entities
- Carrying out an in-house Due Diligence & Data Room Preparation
- Identification & Help in removal of compliance deficiency in Equity Placement Offering
- Advise and Help in Implementation of SEBI Guidelines for Listed Companies and adoption of best practices on Corporate Governance
- Preparation of Investors Presentation for Equity Conference and Road Shows.