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Sourcing Finance Uk 2009


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Sourcing Finance Uk 2009

  1. 1. Sourcing Finance SOURCING FINANCE 1 Slide n°
  2. 2. Sourcing Finance Eur opean businesses are regularly seeking funding for their expansion and their projects; Increasingly these projects involve cross-border aspects involving two or more currencies. Entrepreneurs seek creative solutions in the complex financial markets to access the funds that will secure their development. Advent UK is perfectly positioned to source financing for your company or project. We will source the most suitable funding, organise and accompany meetings and follow up with interested parties, and at contract stage will recommend a suitable International law firm and assist to final contract. Slide n° 2
  3. 3. Contents Sourcing finance - > slide n° 4 Preparation of your financial requirements - > slide n° 5 Prime Banks - > slide n° 6 Investment funds - > slide n° 7 Private equity & venture capital funds - > slide n° 8 Construction finance & property investment - > slide n° 9 Legal & fiscal questions for international property investment - > slide n° 10 Your presentation requirement - > slide n° 11 Investors’ requirements - > slide n° 12 Representation in the city of London - > slide n° 13 Contacts - > slide n° 14 Slide n° 3
  4. 4. Sourcing Finance Advent UK has a strong network of International Banks, Financial Institutions, Investment Funds, Private Equity Capital, Venture Capitalists, International lawyers, International Accountancy and Audit firms, Tax planners and Fiscalists in Europe. Our clients are European companies and entrepreneurs, with a special focus on Great Britain, France, Russia and the CIS countries. We source tailor made Western funding for your company or project, negotiate your financial business relationship with Western investors/ lenders, and accompany you to contract. We will sign an agreement with you to cover our overheads during the sourcing/negotiating period and a success fee on completion of funding. Slide n° 4
  5. 5. Preparation of your investment requirements You will need to supply your company profile and your project with the funding requirement. We will establish together if the requirement is: Debt Finance or Project Finance (banks) Investment Funds Private Equity Venture Capital Joint Venture with a suitable partner You will need: Business plan showing: A full project description Financial requirements with drawdown schedule Own funds invested, guarantees, security Capital & interest payback cash flow projections Equity proposition and relevant exit policy for the private equity or joint venture investor Slide n° 5
  6. 6. Prime banks Pr ofile of lenders: Prime banks are potential lenders for corporate lending (debt finance) and/or project finance with the period of the loan and the interest rates to be decided according to different factors. Sometimes the banks will syndicate large loans with other investors, and they expect the project owners to have invested over 25% into the project. They will look for guarantees against finance which could be guarantees by the City Administration, by another prime bank, mortgage on property owned by the borrower, mortgage on landsite for construction finance, options on shares in the corporate structure of the borrower, and sometimes other guarantee requirements. Slide n° 6
  7. 7. Investment funds These funds invest in companies and in projects well defined and properly managed. Same applications as above, they will take shares and expect to take profit from the share value increase, the revenues, and the capital appreciation of the project. Investment funds invest in established companies and in projects that are well defined and properly managed. These funds have a clear investment strategy, a track record to sustain, and full transparency to their shareholders, frequently institutional. Same applications as for prime banks, they will take shares and expect to profit from the growth of the share value, the revenues, and the capital appreciation of the company or project. Slide n° 7
  8. 8. Private Equity & Venture Capital Funds These funds invest in companies by taking equity, or projects held by companies. They expect to take a profit with an agreed clear exit policy (selling to an end client) within 3-5 years, selling to an identified purchaser or to go AIM/IPO on the London Stock Exchange. Note on construction finance (also comes under project finance) There are different investors interested in the property and construction market in most countries showing an annual let of over 10%; most are looking at either purchasing an existing Class A building fully let on long leases to prime tenants, or funding a Class A construction project to purchase at term when fully let. Slide n° 8
  9. 9. Construction finance & property investment Ther e are construction project lenders; mostly prime banks & investment groups. They expect the borrower to have proven experience in the construction market place, to have a first class project with feasibility study, to be able to supply guarantees on the finished buildings and have a clear exit policy on final ownership. There are different strategic property investors interested in the property and construction market in most countries showing an annual let of over 10%; most are looking at either purchasing an existing Class A building fully let on long leases to prime tenants, or forward funding a Class A construction project to purchase at term when fully let. There are British construction companies, European construction companies expanding into new markets, many with their own financial partners, These companies are looking for joint venture opportunities, or to buy specified office blocks, commercial centers, logistics centers or hotels. There are also European and British end users such as supermarket groups, hotel groups etc. looking for property opportunities, some of these groups have their own funding. Slide n° 9
  10. 10. Legal & fiscal questions for international property investment We need to confirm the legal and fiscal position for foreign investors in the property market. Here is a sample of questions to be addressed: Who owns the land, freehold or leasehold under what terms? What are we buying, an existing building or the right to construct, permits granted for what type of building? Will the building be freehold or lease under what terms? Will the foreign purchasing company/person have to register a local company for the purchase transaction? Local corporate taxes, registration for VAT etc? Are there tax breaks for foreign investors? Can we sell the building and the land to any form of buyer, local or foreign? Profit tax and other local taxes? Can we lease to any form of lessee and under what terms? What taxes payable? Can the invested money be re-patriated under what terms? Slide n° 10
  11. 11. Your presentation requirement Thi s preparation will require all of the first 6 on the list below: 1. Company profile (project owner) and corporate mission statement. 2. Legal company registration documents, statutes, full transparency on shareholding, management, licences, accounts & audits (profit & loss sheets over 3 years), accountability and reporting procedures between management and shareholding. 3. Company activity, CVs of main directors, market sector analysis, company market share, market potential . 4. Current turnover & profitability, productivity/ production rate and growth. 5. Clear description of the project requiring funding showing current status of the project, current investment by project owner, investment requirements and timetable. 6. Business plan & investment requirement showing own funds, security/guarantees, and payback timetable with cash flow projections. For Private Equity & Venture Capital you should show a clear exit policy, usually within 3 to 7 years by re-purchase of stock by management, (MBO), sale to another company, refinance, or listing on stock exchange (either AIM or IPO). Slide n° 11
  12. 12. Investors’ requirements Invest ors will also expect to see the following at the negotiations stage: 7. Production policy (if industrial) of equipment, future purchasing/leasing of equipment and/or technology including IT systems, quality control, international quality standards on production, guarantees, returns/complaints policy. 8. Marketing team, sales and distribution, brand awareness and loyalty, advertising and public relations, sales and promotion policy, regional network/sales representation and their control. 9. Financial management and investment strategy, current bank loans and interest rates, current foreign investment and interest rates, invested equity capital, corporate bonds, credit rating, insurance policies, accounting standards (consolidated accounts within a group?), audit standards. 10. Strategic management and C.V.s of main management, vision on mergers or acquisitions, development and growth plans, training human resources schemes, corporate loyalty and future plans. Slide n° 12
  13. 13. Representation in the city of London We would be happy to help you establish a representation in the heart of the City of London. This will entail registering a British legal entity domiciled in London (please ask for further details), and there are two forms that can be considered to start with: A Private Limited Liability Company (LTD.) with a modest capital that can act as a Private Investment Company, and if the original founders hold 51% of the shareholding they become the effective owners; there is no minority blocking share proportion. It can receive funds against shareholding, and act as the project carrier. It can raise its capital with a simple Board Resolution. A British Offshore International Business Corporation for example in Gibraltar or the British Virgin Islands with a very low tax regime, and can also act as the project carrier. Both these companies can invest in shares, equity, property, obtain leverage deals, and partake in many forms of loans and borrowings. Slide n° 13
  14. 14. Contacts Our team are ready to discuss your funding needs. Please contact: Patricia Goodenough – President – Sergey Kazantsev – Director Russian and CIS countries – Ian Leapingwell - Development Director Great Britain – Michel Lubac – Marketing Director France – Offices : In Great Britain : ADVENT UK LTD, Suite 8, 28 old Brompton Road LONDON SW7 3SS - ENGLAND Tel. : +44 207 801 3080 Fax : +44 207 691 7969 In France : ADVENT UK LTD, 15 rue Clément Bayard 92300 LEVALLOIS - FRANCE Tel. : +33 1 47 48 91 97 Fax : +33 1 47 48 02 22 Slide n° 14