AN ILLUSTRATION OF SAMPLE OF FINANCIAL ENGINEERING/ DEALS/ SOLUTIONS
Each challenge provides us the opportunities to tap on our Resourcefulness, Multifaceted Thinking, Critical & Creative Problems Solving, Versatility, Financial Engineering/ Structuring, and our expanding networks, the hallmark of our culture and mission, our approaches to Strategy Consulting, Cross-Border Strategic Advisory, Financing Strategies, Investment Strategies, Capital Raising, Mergers & Acquisitions, Corporate Finance, Entrepreneurial Finance and Negotiation Strategies
Situation:
Market Entry But Insufficient Funds
An Industrial Coatings look to expand to capture the growing needs of their products. However, the Acquirer did not have sufficient funding to facilitate the purchase
Results:
We conducted a Merger’s Consequence Analysis, in addition to Preparing the Purchase Terms of M&A, identifying Potential Synergies and Duplicative Costs: a Potential Savings
A combined company Pro-Forma financial summary indicates that not only result in positive combined earnings with non-dilutive capital, but the Acquisition can support the Debt that facilitate the purchase
We assisted clients on Sourcing the funds, formulated Terms and Structure to suit the risks of Strategic Acquisition
Situation:
A Family Enterprise with many generations to consider for Succession Planning and Wealth Preservation. However, not all potential successors are “created equal”. Equally important, each potential successor’s desire might not be aligned
Results:
FulcrumBridge International explored, studied, and along the way, working with Specialist Advisor, Estate Planner to discover the use of the Trust (and along with its cousin: a Private Foundation) as a Succession Planning and Wealth Preservation tool
The Trust (and sometimes a Private Foundation) allows the Family to buy time:
1) until they find the right successor(s) to groom to succeed the Family Enterprises
2) to preserve peace and harmony, and most important of all, Enterprise can continue to prosper and grow because different interests of the successors are properly governed, can grow through Mergers & Acquisitions, and the enterprise can be recapitalized for funding family needs such as Children’s educations
3) depending on the types of enterprise, founder(s)/ owner(s) can “take time off” meanwhile
Situation:
Valuation has always been challenging especially in the cases of pre-Revenue, although there are many methods available
Our Entrepreneur/ Founder developed a process where ocean wave’s energy can be converted to critical volume to generate electricity
We explored the possibilities of fundraising and Strategic Corporate Mergers & Acquisitions, each required a Valuation Methodology that demonstrate the UNIQUENESS of this process
But we discovered the Conventional Valuation Methods are too standardized to capture its Unique Factors
Results:
In addition to conducting the Conventional Valuation Methods, our FICSA Method and Principle helps to fill the missing gaps and make it whole by isolating these Unique Factors and properly priced them, where the Conventional Valuation Methods would often fail to notice
Situation:
Early-Stage Fintech is on the race to 1) capture market shares, and 2) to even out its lumpy revenue model
Results:
We challenged the Founder and Management Team to develop the Revenue Model to capture the Clients for long-term contracts with periodic payments
At the same time, we locate an attractive target which would help to move its growth curve on the next level
We conduct a Pro-Forma Projection and present to potential investors for possible M&A financing
Consequently, by converting to a steady based revenue model, the Company was able to be aggressive to capture more market shares. These factors increased the attractiveness for further financing opportunities which enable it to build “M&A Muscles”, allowing it the options to grow organically or inorganically
Situation:
A startup in Health Tech had struggled for years to roll out its infrastructure and International Distribution. Further more, time is an essence as its “moat” is no guaranteed even though it was ahead of the curve. Thus it needs to expedite its growth
Results:
After combing the Market Competition, we formulated a strategy to explore and to discover the possibility of Joint Venture or an out right acquisition of a target that are in similar stage with infrastructure and International Distribution that fit well in its market expansion for the Acquirer
The Mergers & Acquisitions deal was consummated through share swaps
The combined Company can now position to further raise fund and in a better position to withstand the competition and set to grow
Situation:
Audio Supplier to Hotel Industry looks to monetize, but hesitant to do an outright exit or selling the enterprise in whole because the Founder believed there is much values for its potential growth
Results:
FulcrumBridge International set out to unlock the enterprise’s value through proper design, Financial Engineering/ Structuring, and structure of the financial instruments that met the founder’s financial needs and preserved the company for the next generation
After thorough thought through, the Founder chose a package of mezzanine financing with warrants and recapitalisation of senior debts
Founder was also able to preserve super majority ownership of his shares, which allowed him time to work hard to groom for potential successor(s) and to look forward to a second liquidity event at the same time