1. ‘Creating Value using Finance: an advisor’s view’
Background - what we do/landscape
Funding - types and issues to think about
Preparation and planning
Case studies
Q&A: open forum

2. Introducing M3 Corporate Finance (M3 CF)
Background
Large gap in the smaller end of the SME market for an ‘integrated fund raising and transaction support service’ to offer a ‘large deal service’ to smaller transactions
Individuals involved operate in complimentary sub sections of the finance marketplace
Brings together varied technical and operational backgrounds

3. Who is M3 CF ?
Team of 7 experienced finance professionals Complementary skills include:
Founder of a corporate finance boutique
Wide experience of transactions from both inside and outside a business
Qualified accountants
Corporate bankers and financiers
Practical experience of running businesses
Corporate Finance Academic and strategic management

4. What does M3 CF do ? Fund Raising Process Management
Fund raising for all sizes and stages of business development (£50k - £10m)
Equity, debt, asset finance, cash flow
Process Management
Transactional and project management (lead advisory)
MBI programme
Services can be provided on a mutually exclusive basis

5. CF Marketplace Landscape Typical Advisor Characteristics
Tier 1- top ten accountants with CF units in house
Tier 2- secondary accountants with smaller CF units
Boutiques
Others- consultants and general business accountants
Typical Advisor Characteristics
Interest in larger fund raising and deals and charge high associated fees
One off transaction focus with little interest in ongoing relationships
Narrower, or no direct business or technical experience in the team

6. Why use M3 CF ? Unique service to a specific target market
Smaller transactions of core focus
Wider offering than just pure Corporate Finance
Finance raising for all types of requirements
Strategy and planning support
Lead advisor work
Wider range of relevant experience
Operated in CF market establishing a boutique
Tier 1 qualified accountants and financiers
Experience in transactions and fund raising on the company side of the fence
Relationships focussed - important for re-occurring income

7. How we operate Consultancy approach Day rate and fees on deliverables
Success fees- % of deal
Retainers

8. Funding- options/issues
Debt :
Secured- asset backed (ABL),own/business
Cash flow backed- multiplies
Covenants-gearing/interest/performance
Equity:
Types- angels/MBI/VC
Returns

9. Planning Budgets Sensitivities Assumptions Due diligence
Revenue and return focussed

10. Case studies The start up CCTV – IP Sector Experience
Contractual sales £50k. Budget £0.5m
Private money/bank loan/DTI
Growth through dilution/acquisition

11. Case Studies The MBI- why? Cash investment? How much?
Leveraged buy out- ABL debtors/stock/assets- mortgage
Cash flow – filling the goodwill
EV £3m. Sales £8m, EBIT £500k
Secured borrowing £1.8m
Deferred £0.5
Cash flow £0.7m

12. Q&A
Questions/Comments