“We advise corporations and start-ups on their most critical financing decisions, including Initial Public Offering, Initial Coin Offering or conventional Venture Capital and Private Equity funding”
a. Private Equity and Venture Capital
As highly experienced venture capitalists Kerburn Rose can very quickly ascertain not only whether the financial matrix of an investment opportunity is likely to be of interest to a venture capital or private equity house but which transactions are likely to appeal to which funding institution.
A proposition put together under the supervision and due diligence of Kerburn Rose is more likely to receive a favourable response because of our acknowledged reputation for introducing quality investment opportunities.
Our role includes:
- Producing an Information Memorandum which describes the business in detail
- Producing a presentation to be given to potential investors
- Introducing the opportunity to potential investors
- Advising on valuation
- Negotiating and advising on the terms of the investment
- Project managing the deal execution
Examples of Transactions
1. Kerburn Rose was appointed by Peakdale Molecular Limited to advise on its AIM floatation. Peakdale provides contract chemistry services to the pharmaceutical and biotechnology industries. The Company was moving from its facility of 1,000 sq ft to a new bespoke facility of 40,000 sq ft and the proceeds from the AIM float were designed to finance this. Unfortunately the terrorist attack on the Twin Towers in New York destabilized the stock markets with the result that, along with others, the AIM float was pulled. Kerburn Rose immediately introduced the investment opportunity to three Private Equity Houses two of whom made investment proposals. The result was an investment by funds managed by Close Investment Management.
b. Initial Public Offerings / Stock Exchange Flotations
Statement: “Our IPO Advisory Services team provides solutions and strategies your organization needs through the IPO process. The tools and methodologies we use, help mitigate transaction risk and reduce execution time so you can stay focused on your daily business operations”
Text: Should you float your company on the stock market you will find that by the end of the transaction the advisers you thought were on your side and acting on your behalf all had their own agenda’s; mainly designed either to make their job easier or to protect themselves. To them you are merely a transaction to be processed for a fee and serving your requirements is relatively low down on the list of their priorities. You will also find the process highly inefficient, involving duplication and triplication, as you are asked to provide the same information to a multitude of lawyers and accountant.
Kerburn Rose’s job is to:
- Act as our Client’s representative advising on what is fair and reasonable in respect of the demand placed by your other advisers
- Project manage the flotation process so that our clients can spend more time running their business
Our role includes:
- Producing an Information Memorandum which describes the business in detail (This will become the basis for the production of the Prospectus)
- Producing a presentation to be given to potential stockbrokers
- Assisting in the selection of stockbrokers
- Advising on valuation (The stockbroker will want to sell your shares as cheaply as possible. You will want to at last achieve fair value)
- Negotiating the terms of reference and fees of your other advisers
- Managing the project against an agreed project plan
It is fair to state that in every floatation in which Kerburn Rose has been involved we have saved our clients money in other fees and time which would have been spent unnecessarily away from their business over and above our own fee costs.
Examples of Transactions
- Kerburn Rose advised Akers Biosciences Inc., then a pre-revenue diagnostic company, on its flotation – the second flotation ever of a US based company on the AIM market.
- Kerburn Rose advised Beechcroft plc, a specialist house builder, on its flotation on AIM. The original equity provider decided they wanted to exit their investment and did not believe that the Company could successfully float. Three years after a successful flotation Beechcroft was subject to a recommended offer from Laing Homes plc which saw the shareholders receiving three times the original float price.
c. Initial Coin Offerings
Statement: “While you are building the investment case for an Initial Coin Offering, you’re not doing this alone — you’re now working with experts, who understand the benefits your company delivers to the community”
Text: With an Initial Coin Offering, your project has a viable alternative to the conventional way of raising capital through banks or venture capitalists, which typically involve dilution of equity and loss of control.
An Initial Coin Offering usually involves the creation and sale of cryptocurrency or tokens. This token-based assets are rapidly gaining widespread acceptance. They are digital representations of proprietary services, ownership of equity, or other tangible or intangible assets. At the same time they represent a new form of digital money used to fund your endeavor.
Initial Coin Offerings also bypass the limits of traditional crowdfunding by introducing a secondary market to their funders. This secondary market is why, despite ICOs generally being considered high-risk ventures, many investors are willing to take the chance in hope of large payoffs. This new method of crowdfunding recently broke the USD 4 billion barrier globally,[1] which makes it a considerable alternative to traditional capital raising methods.
Our experienced team of ICO experts assists you throughout the entire capital raising process and help you finance your endeavour, by issuing your own digital currency.
Our services include:
- crafting the investment case
- crafting the business model (plan for shared value, value return to founders and members of the network, and plan for sustaining and maintaining the network)
- crafting a value proposition through a quantitative exercise
- defining the Minimum Viable Product (MVP) that will attract early entrants
- crafting investment documentation (business plan, financial model, whitepaper, token distribution model, token circulation dynamics, terms & conditions for token sale, etc.)
- advise on the implementation of smart contracts (utility, asset, payment) and tokenization processes
- advise on important legal considerations regarding an Initial Coin Offering event
Examples of Transactions
- Granty
- Cytex
d. Private SAFT Deals
Statement: SAFT Agreements
Text: Smart contracts are the bread and butter of blockchain technology. Essentially, smart contracts are the digitized business logic used to help you exchange any asset of value without the need for third-party services.
In practice, smart contracts are coded onto the blockchain as “if-then” statements that automatically execute transactions and record information onto the ledger. Because the conditions of smart contracts are mutually agreed upon by all members and because they’re executed automatically without intervention, smart contracts are one of the key components responsible for establishing trust and efficiency within your network.
Examples of Transactions
- Granty
- Cytex