Case Study: Financial & Strategic Advisory Services

Transaction Support for Capital Raising Efforts

Our Client

A newly-formed company with a licensing, co-financing, marketing and distribution agreement with a multi-billion dollar global strategic partner

Situation

The company was seeking to secure over $250 million in senior and mezzanine debt and equity to finance its business activities, and retained The Salter Group to support its capital raising efforts through a number of initiatives, including (i) assisting in the development of descriptive transaction materials, (ii) providing forecast support and capital structure risk and return analyses, and (iii) performing sensitivity analyses based on alternative performance and/or capital structure scenarios.

Key Issues/Services

Assisting the company in creating an executive summary of its business, market positioning and prospects for submission to prospective investors
Developing financial forecasts on a pro-forma basis, with detailed market support, operational assumptions and capital structure analyses
Identifying prospective investors
Presenting the forecasts and other financial information to private equity funds, hedge funds, commercial banks and other prospective financing sources
Creating supplemental financial models and analyses, as requested by potential investors and lenders, to portray the financial implications associated with alternative debt/equity transaction structures
Serving the interests of our client while maintaining our reputation for independence and objectivity with the prospective investors and lenders (a number of which were former or current clients in other projects) such that they were willing to commit to invest in the company based, in large measure, on our valuation indications

The Salter Group's Role & Outcome

We delivered presentations to the company and more than forty prospective investors and lenders summarizing our financial analyses.
We introduced the company to an investment banker, which the company engaged to solicit the financing commitments and consummate the financing following our presentations.
The company secured the necessary financing and, following the closing, retained The Salter Group to assist it in (i) forecasting the financial results of certain company projects at various phases of development, and (ii) increasing its existing senior bank facility to enable an expanded co-financing relationship with its strategic partner.

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