AGM law firm about the situation in Spain and M&A new trends in investing opportunities.

1. www.agmabogados.com
15,16 &17 November

2. What about Spain?
www.agmabogados.com
15,16 &17 November

3. Introduction
 Where is Spain now?
 Where we are going?
 Opportunities:
• Fields
• Sectors
 How we can work together?
www.agmabogados.com
15,16 &17 November

4. MACRO 2012…
•GDP
1.029.020M€
•GDP/ per cápita
22.300€
SOME “BAD NEWS” (2012)
•PUBLIC DEBT
86% GDP
•DEFICIT
-110.000 M€
•UNEMPLOYMENT RATE
26%
SOME “GOOD NEWS” (2013)
•RISK PREMIUM (November)
230
•P.E.R. EXCHANGE STOCK
+ 16,46%
•AGENCIES’ RATING UP
Fitch, Moody’s
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www.agmabogados.com
15,16 &17 November

5. www.agmabogados.com
15,16 &17 November

6. Facing opportunities
INVESTMENT APPROACH
Q1+Q2 2013 TO SPAIN…
TRADE GAP: net foreign investment = + 6.629 M€.
EXPORT: 138.583 M€. Highest since records run (1971).
EXPORT ABROAD UE: +13% increase, 38% total, mainly to Near East
& Africa.
TOP INVESTORS: France, Luxembourg, Holland, UK & USA.
SECTORS: Financial & Insurance, Manufacturing & Real Estate.
SPAIN’S SIGNIFICANCE
3rd investor in South America, just next to USA & Holland.
11th º World Investor: 640 M$
In the past, Multinational companies. Today, SME’s time
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www.agmabogados.com
15,16 &17 November

7. DISTRESS
• Deals 2011+2012 > than 2005-2010 altogether.
• Most Funds coming from UK & USA. Focused
on Real Estate.
• Companies all over EU beginning to take
strong positions.
• Distress = Trust in company/country
www.agmabogados.com
www.agmabogados.com
15,16 &17 November

8. DISTRESS
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Many companies either in bankruptcy
Or with financial problems
This is the moment to buy.
Attractive for investors:
Very low price
Even just assuming the debt (renegotiated)
Legal system configurated to enable purchases
It permits to purchase production unities and assets
from a company getting ride from debts attached to
the Company
- Once acquired, redundancies are cheaper…
www.agmabogados.com
www.agmabogados.com
15,16 &17 November

9. DISTRESS
•
•
•
•
-
Many companies either in bankruptcy
Or with financial problems
This is the moment to buy.
Attractive for investors:
Very low price
Even just assuming the debt (renegotiated)
Legal system configurated to enable purchases
It permits to purchase production unities and assets
from a company getting ride from debts attached to
the Company
- Once acquired, redundancies are cheaper…
www.agmabogados.com
www.agmabogados.com
15,16 &17 November

10. REAL ESTATE
•SAREB manages close to 60.000 M€. Discounts from 30%
to 70%.
•Expected ROI clearly higher than most of EU countries
due to low prices.
•Extensive portfolio: hotels, residential, retail, industrial,…
• Big Funds (Blackstone,…) overflying. H.I.G. bought a 100
M€ pack.
www.agmabogados.com
www.agmabogados.com
15,16 &17 November

11. Venture Capital / Private Equity
Some statistics of 2102
•Private Equity
•2,300M invested
•40% of invested funds to Tech companies (25% the
previous year)
•72% of transactions to Tech companies
•1st semester 2013: same tendency
•Venture Capital
•Smaller amounts (up to 500,000€)
•86% of the invested amounts (136.9M) to Tech
companies.
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•305 transactions
www.agmabogados.com
15,16 &17 November

12. Venture Capital / Private Equity
Some legal aspects:
• Same structure as customary in many countries
1.Cash in/ cash out
2.Protection to investors:
a.
b.
Veto rights in GSM and Board
Permanence/Non Compete clauses for Management
a.
c.
d.
Good leaver/bad leaver
Transfer of shares: flexibility to agree on this point
Exit:
a.
b.
c.
Drag along
Tag Along
Liquidation Preference
www.agmabogados.com
www.agmabogados.com
15,16 &17 November

13. Venture capital: the power of start-ups
The fever of start-ups
Barcelona is becoming the center of Tech start-ups in
southern Europe
Many deals in progress.
Starting up to 500.000€
Then the company grows…
Big margin of profit in cash out
Also foreign investors
Again: a great legal system to protect investors
www.agmabogados.com
www.agmabogados.com
15,16 &17 November

14. Facing Opportunities
“COOL “SECTORS
TIC
BIO
PHARMA + MEDICAL
FOOD
TOURISM
www.agmabogados.com
www.agmabogados.com
15,16 &17 November

15. Facing Opportunities
• Treeveo announces the closing of its “All Saints” investment
round: the first in Spain
• Entrepreneurs using the “All Saints” method deliberately seek
to raise capital in smaller tickets from a larger number of
investors: “The Saints”.
• …this investment round was managed and supported by
Carlos Martinez, Head of M&A-Private Equity of AGM
Abogados in Barcelona: www.agmabogados.com
www.agmabogados.com
• http://es.wayra.org/es/wayraweek/espana-barcelona-2013
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15,16 &17 November

16. HUB Barcelona
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TIC: 22@ + MOBILE WORLD CONGRESS
MEDIA: BARCELONA MEDIA PARK located at 22@
BIO + LIFE SCIENCES : Science Park + Biomedical Research Park
ENERGY: home to European Agency FUSION 4 ENERGY (ITER’s
project)
DESIGN: Design Hub Barcelona (DHB) + Barcelona Design
Cluster
AEROSPACE: Aerospace Technological Center (CTAE)
SMART CITIES
LOGISTICS: HARBOUR (Hutchison) + AEROPORT (Top Ten Europe)
AGROALIMENTARY: Focused on Premium Products
TOURISM: 7,5 M visitors, only 22% Spanish. 4th city in Europe
MEDICINE & HEALTH: BARCELONA MEDICAL CENTER (20
Companies)
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www.agmabogados.com
15,16 &17 November

17. www.agmabogados.com
www.agmabogados.com
15,16 &17 November

18. Conclussions
-
The crisis is gone
Spain is holding foreign investors
Spain is investing abroad
Perfect moment to do business with Spain
We can generate the deal business together.
Our tools for you:
- AGM Corporate Finance: brokers
- Partnership with CW Downer worldwide
- Paris: our own office.
- China: representative office and partnership
with consultancy-brokers Addseco
www.agmabogados.com
- Let’s work on it!
www.agmabogados.com
15,16 &17 November

19. Contact
BARCELONA
MADRID
Pau Claris, 139 Principal
08009
Ph.: +34 93 487 11 26
Pº Castellana, 114 Esc. 1 6º 2ª
28046
Ph.: +34 91 562 13 86
agm@agmabogados.com
madrid@agmabogados.com
PARIS
9, rue Boissy d’Anglas,
75008
Tel: +33 1 44 90 80 70
paris@agmabogados.com
www.agmabogados.com
www.agmabogados.com
15,16 &17 November