Partial Sale to Unlock Capital

Industry
Digital Signage
Type
Established SME
Objective
Secure Growth Capital and sell some shares to release cash
Support Type
Sell-Side Advisory with a Focus on Structuring a Balanced Deal for Growth

Background

Through in-depth discussions, we unearthed that the owner of a rapidly expanding digital signage company…

  • Wanted to maintain day-to-day control of the company while securing financial rewards for years of hard work by selling part of the company.
  • Wanted additional funding for the business to sustainably grow, develop new products & expand into new markets, as well as transition to a more professional management team.

What We Did

Recognising the need for a custom solution, we developed a deal structure combining:

Share Sale

The owner monetised a portion of his shares to generate immediate liquidity, providing him with a financial reward for his efforts while maintaining majority control.

Share Issuance

We introduced a new investor through the issuance of new shares, providing capital to fund expansion and address the skills shortage. The funds raised were earmarked for recruitment, particularly targeting skilled software developers and engineers.

Results

We Found the Right Buyer

We successfully identified a buyer who was not only willing to agree to the deal terms but was also keen to become a strategic investor, providing both capital and valuable support.

A Fair Deal was Negotiated

We negotiated a fair and balanced deal that met the owner’s goals, ensuring that both parties were aligned for long-term success.

Due Diligence and Closing was Seamless

Our team guided the owner through the due diligence process, ensuring smooth and efficient handling of all necessary documentation and procedures. The deal was closed and everything executed seamlessly.

Key Takeaways

  • Deeply understanding, defining and refining the objectives of a deal are incredibly important to ensure all parties walk away happy once everything is said and done.
  • When multiple objectives are present, custom, innovative deal structuring is key to ensuring successful outcomes.
  • A well-structured deal will bring in investors who contribute beyond capital and add valuable skills, expertise, and networks to the business.

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