Monthly	
  Webinar	
  Series	
  
	
  

presents	
  
	
  

The	
  “Holy	
  Grail”	
  for	
  Micro-­‐Cap	
  CEOs	
  &	
  CFO...
 

Thank	
  you	
  for	
  participating	
  in	
  “The	
  ‘Holy	
  Grail’	
  for	
  Micro-­‐Cap	
  CEOs	
  &	
  CFOs:	
  Kn...
The	
  ‘Holy	
  Grail’	
  for	
  Micro-­‐Cap	
  CEOs	
  &	
  CFOs:	
  	
  Knowing	
  The	
  
Financing	
  Terms…	
  Long	
...
 

Micro-­‐Cap	
  Corporate	
  Finance	
  Conundrum:	
  
A	
  Perfect	
  Storm	
  of	
  Unnecessary	
  Dilu�on	
  

v  80...
The	
  Remedy:	
  Data…	
  Through	
  a	
  Buy-­‐Side	
  Lens	
  

	
  
v  The	
  same	
  deal	
  data	
  relied	
  upon	...
 

StreetCheck™:	
  What,	
  How,	
  Who,	
  When	
  &	
  Why	
  

v  What:	
  	
  StreetCheck	
  is	
  a	
  consul�ng	
 ...
 

StreetCheck™:	
  Sample	
  Fact	
  Pa�ern	
  

v  Nasdaq-­‐listed,	
  market	
  cap	
  <	
  $200M,	
  effec�ve	
  shelf...
 

StreetCheck™:	
  Takeaways	
  

v  Post-­‐2008	
  funding	
  environment	
  is	
  challenging,	
  but	
  too	
  many	
...
 
	
  
	
  

Conference Manual Page 8
 

	
  
	
  
	
  

	
  

Contact	
  
	
  
Adam	
  J.	
  Epstein,	
  Founding	
  Principal	
  
ae@thirdcreekadvisors.com	
 ...
SPEAKER	
  BIO	
  AND	
  CONTACT	
  INFORMATION	
  
	
  

	
  

	
  

Adam	
  Epstein	
  is	
  a	
  corporate	
  director	...
Upcoming SlideShare
Loading in …5
×

The ‘Holy Grail’ for Micro Cap CEOs & CFOs: Knowing the Financing Terms—Long Before the Term Sheet Arrives

473 views

Published on

This Growth Capital Investor webinar focuses on a critical area of emerging growth company finance: negotiating the best pricing for an equity private placement. Too often, company management teams go into private placement negotiations with little or no information on likely pricing terms for their offering. Without a pricing strategy, negotiations can be prolonged or derailed by unrealistic management expectations or onerous investor protection terms.
Addressing this critical area, micro-cap board advisor Adam Epstein of Third Creek Advisors has created an equity private placement pricing analysis system that can reliably forecast a company’s likely cost of capital before negotiations commence – giving company management teams perspective and insight into their bargaining position vis-à-vis the current equity capital marketplace. Called “StreetCheck”, this system is now available to any company positioning itself for a future capital raise.

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
473
On SlideShare
0
From Embeds
0
Number of Embeds
17
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

The ‘Holy Grail’ for Micro Cap CEOs & CFOs: Knowing the Financing Terms—Long Before the Term Sheet Arrives

  1. 1. Monthly  Webinar  Series     presents     The  “Holy  Grail”  for  Micro-­‐Cap  CEOs  &  CFOs:     Knowing  the  Financing  Terms—Long  Before  the  Term  Sheet  Arrives     October  10,  2013     Panelist     Adam  J.  Epstein   Founding  Principal   Third  Creek  Advisors,  LLC     Moderator   Brett  Goetschius   Editor  and  Publisher   Growth  Capital  Investor  
  2. 2.   Thank  you  for  participating  in  “The  ‘Holy  Grail’  for  Micro-­‐Cap  CEOs  &  CFOs:  Knowing  the  Financing  Terms—   Long  Before  the  Term  Sheet  Arrives.”  This  manual  contains  information  you  will  need  for  this  webinar.   CONFERENCE  MANUAL     This  manual  contains:       •Dial-­‐in/log-­‐on  instructions.     Speaker  bio  and  contact  information.     •Tips  for  submitting  questions.     •Pertinent  information  from  the  pages  of     Growth  Capital  Investor.     CONFERENCE  DETAILS     The  webinar  is  scheduled  for  Thursday,   October  10,  2013  at  2:00  p.m.  EDT,  1:00   p.m.  CDT,  12:00  p.m.  MDT,  and  11:00  a.m.   PDT.  It  will  last  60  minutes.     HOW  TO  JOIN  THE  WEBINAR     Online  With  Streaming  Audio   •Go  to  http://web.beaconlive.com   •On  the  “Join  a  Meeting”  side  of  the  login   page,  enter  meeting  room:  mnm2       •Enter  your  unique  PIN  (sent  in  your  email   confirmation).   •Click  on  “Join  Meeting”  to  access  the   presentation.   •Make  sure  your  computer  speakers  are   turned  on  and  at  the  correct  volume.  You   can  adjust  the  volume  by  using  the  up   and  down  arrows  above  the  presenter’s   box.   •If  you  have  trouble  with  your  PIN  stay  on   the  line  and  an  operator  will  assist  you.   •If  you  are  using  a  speakerphone,  put  the   phone  on  MUTE  for  best  sound  quality.   •If  you  are  disconnected  at  any  point,  just   repeat  the  processes  above.       If  you  have  problems  accessing  the   webinar,  please  call  877-­‐297-­‐2901.     HOW  TO  SUBMIT  QUESTIONS   Optional  Telephone  Access   If  you  have  trouble  streaming  the  sound  through   your  computer,  please  follow  these  instructions  to   listen  by  phone:     •Dial  1-­‐877-­‐533-­‐4964  about  5-­‐10  minutes   before  the  start  of  the  conference.     •Enter  your  unique  PIN  (sent  in  your  e-­‐ mail  confirmation).   •You  will  hear  music  on  hold  until  the   conference  has  started  or  be  connected   directly  if  it  has  already  begun.     PLEASE  NOTE:  Only  one  dial  in  and  one   log  on  per  PIN  are  allowed.         Questions  may  be  submitted  at  any  time   during  the  call  using  the  chat  function  on     the  web  interface  in  the  lower  left  corner   of  your  screen.  Just  type  in  your  question   and  send  it  to  “Q&A  session”  in  the  drop-­‐ down  menu.     Conference Manual Page 1
  3. 3. The  ‘Holy  Grail’  for  Micro-­‐Cap  CEOs  &  CFOs:    Knowing  The   Financing  Terms…  Long  Before  the  Term  Sheet  Arrives             STREET Growth  Capital  Investor  Webcast   October  10,  2013   Adam  J.  Epstein       ©  2013  Third  Creek  Advisors,  LLC   Conference Manual Page 2
  4. 4.   Micro-­‐Cap  Corporate  Finance  Conundrum:   A  Perfect  Storm  of  Unnecessary  Dilu�on   v  80%  of  U.S.-­‐listed  public  companies  have  market  caps  <  $500M;  40%  of   companies  listed  on  Nasdaq,  NYSE,  NYSE  MKT  are  micro-­‐cap  companies   v  Micro-­‐  and  small-­‐cap  companies  raise  $30B  -­‐  $50B  of  growth  capital  annually      v  Size  of  the  market  notwithstanding,  the  micro-­‐cap  funding  ecosystem  is     inefficient  and  o�en  penal  to  issuers       v  “Perfect  Storm”  of  unnecessary  dilu�on:   ü  Many  small  pubco’s  lack  in-­‐house  capital  markets/corporate  finance  experts   ü  Capital-­‐raising  guidance/logis�cs  are  predominantly  outsourced   ü  Marketplace  is  beset  by  conflicts  of  interest   ü  Challenging  for  issuers  to  analyze  reasonableness  of  terms   ü  Weak  balance  sheets  thwart  comparison  shopping           ©  2013  Third  Creek  Advisors,  LLC   Conference Manual Page 3
  5. 5. The  Remedy:  Data…  Through  a  Buy-­‐Side  Lens     v  The  same  deal  data  relied  upon  by  sell-­‐side/buy-­‐side  is  available  to  every  micro-­‐ cap  company  –  virtually  none  use  it   v  Without  deal  data,  issuers  have  no  idea  what  financing  terms  other  similarly   situated  companies  are  receiving      v      Without  deal  data,  issuers  are  at  a  material  disadvantage  in  hiring  the  right   investment  bank   v  Without  deal  data,  issuers/BODs  have  no  objec�ve  basis  upon  which  to  approve   or  reject  poten�al  financing  terms   v  But,  deal  data,  like  any  sta�s�cs,  are  of  limited  value  without  context   v  To  op�mize  deal  data  for  issuer  use  it  needs  to  be  interpreted  through  a  buy-­‐side   lens  –  StreetCheck  makes  deal  data  indispensable     ©  2013  Third  Creek  Advisors,  LLC     Conference Manual Page 4
  6. 6.   StreetCheck™:  What,  How,  Who,  When  &  Why   v  What:    StreetCheck  is  a  consul�ng  service  that  provides  CEOs/CFOs  for  the  first   �me  with  an  unbiased  assessment  of  how  much  capital  a  company  can  likely  raise   in  the  equity  capital  markets,  using  what  financing  structure,  and  on  what  financial   terms       v  How:    StreetCheck  is  based  upon  a  proprietary  weighted  analysis  of  SEC  filings,   corporate  history,  and  recent  financings  undertaken  by  similarly  situated       companies  (deal  data);  simple  fixed  fee  unrelated  to  financings     v  Who:    StreetCheck  was  developed  by  TCAs  founder,  Adam  J.  Epstein,  who  co-­‐ managed  a  hedge  fund  that  invested  in  more  than  500  micro-­‐  and  small-­‐cap   financings;  TCA  isn’t  IB  or  investor,  so  no  conflicts  of  interest       v  When:    StreetCheck  is  best  used  in  advance  of  a  capital  raise,  or  to  assess  exis�ng   funding  terms   v  Why:    StreetCheck  facilitates  smarter,  less-­‐dilu�ve  financings   ©  2013  Third  Creek  Advisors,  LLC     Conference Manual Page 5
  7. 7.   StreetCheck™:  Sample  Fact  Pa�ern   v  Nasdaq-­‐listed,  market  cap  <  $200M,  effec�ve  shelf,  daily  trading  vol.  <  $500K   v  Company  requires  $5-­‐7M  near  term;  180˚  scenarios  depicted  by  2  IBs   ü  Good:  products  gaining  trac�on,  gross  margins  increasing   ü  Bad:  poor  execu�on  track  record,  warrant  overhang    v      StreetCheck              capital  needs/�meframe  unlikely  with  shelf  offering;  more  likely   with  unregistered  conv.  preferred  (likely  terms  provided)     v  Morals  of  this  Story   ü  Wrong  corp.  counsel  =  wrong  S-­‐3  filed   ü  IBs  that  do  lots  of  shelf  offerings  tend  to  prefer/recommend  them   ü  Fairly  typical  fact  pa�ern  can  devolve  quickly  into  close  brush  w/insolvency   ü  Being  realis�c  +  data  +  buy-­‐side  lens  =  saved  �me/money   ©  2013  Third  Creek  Advisors,  LLC   Conference Manual Page 6
  8. 8.   StreetCheck™:  Takeaways   v  Post-­‐2008  funding  environment  is  challenging,  but  too  many  micro-­‐cap  officers   and  directors  exacerbate  difficul�es  by  outsourcing/flying  blind   v  Deal  data  is  powerful  knowledge,  especially  when  interpreted  through  a  buy-­‐side   lens    v      Knowing  the  likely  terms  before  capital-­‐raising  begins  facilitates:   ü  Wiser  investment  banking  choices   ü  More  accurate  AOPs/budge�ng   ü  Timely  legal/regulatory/structural  troubleshoo�ng   ü  Be�er  corporate  governance   ü  Smarter,  less-­‐dilu�ve  financings           ©  2013  Third  Creek  Advisors,  LLC   Conference Manual Page 7
  9. 9.       Conference Manual Page 8
  10. 10.           Contact     Adam  J.  Epstein,  Founding  Principal   ae@thirdcreekadvisors.com   415.730.1915       For  more  informa�on  about  TCA:   h�p://www.thirdcreekadvisors.com               ©  2013  Third  Creek  Advisors,  LLC   Conference Manual Page 9
  11. 11. SPEAKER  BIO  AND  CONTACT  INFORMATION         Adam  Epstein  is  a  corporate  director  and  a  special  advisor  to  small-­‐cap  boards  and  investment  funds  through  his  firm,  Third  Creek   Advisors,  LLC  (“TCA”).  He  is  the  author  of  The  Perfect  Corporate  Board:  A  Handbook  for  Mastering  the  Unique  Challenges  of  Small-­‐Cap   Companies  (New  York:  McGraw  Hill,  December  2012).  Mr.  Epstein  is  lead  director  of  OCZ  Technology  Group,  Inc.  and  a  member  of  the   National  Association  of  Corporate  Directors  (“NACD”).  He  is  an  NACD  Board  Leadership  Fellow,  the  highest  level  of  credentialing  for   corporate  directors  and  corporate  governance  professionals.  Mr.  Epstein  is  a  regularly  featured  speaker  at  national  corporate  governance   forums  and  investor  conferences,  and  is  a  small-­‐cap  features  contributor  to  Directorship  magazine.  Prior  to  founding  TCA,  Mr.  Epstein  co-­‐ founded  and  was  a  principal  of  Enable  Capital  Management,  LLC  (“ECM”).  During  his  tenure,  ECM’s  special  situation  hedge  funds  invested   in  more  than  500  small-­‐cap  financings  in  the  United  States,  the  European  Union,  and  Australasia.     CONTACT   Adam  Epstein   Founding  Principal   Third  Creek  Advisors,  LLC   415-­‐730-­‐1915   ae@thirdcreekadvisors.com         Conference Manual Page 10

×