1. 18-Nov-16

2. Investor Requirements and Financing Techniques
Nick Alfille
James Bronte-Stewart
18 November 2016
18-Nov-16

3. Introduction Eyemax – objectives and requirements Outline of Session
IPO
Main funding options
Factors influencing choice of funding option
Detail on debt and equity raising
Alternative funding methods
FX/Currency Issues
NOT TAX!
18-Nov-16

4. IPO Why? Access to market Access to capital Raise profile
Ability to use shares for acquisition
Incentivisation
But …….. some disadvantages
Preparation
Suitability – what will investors look for?
Liquidity
Board Composition
Corporate Governance
Structure
18-Nov-16

5. Financing Techniques Equity Debt Others Corporate Retail Bonds PE
18-Nov-16

6. Financing Technique - Company
Factors Influencing
Financing Technique - Company
Cost of debt and equity
Size of fundraising
Commercial considerations
gearing
restrictions
share rating
impact on earnings
18-Nov-16

7. Factors Influencing Financing Techniques – Investors/Funders
Return on equity
Ability of company to offer security
cashflow
assets
structure
18-Nov-16

8. Equity Finance Rights issue Open Offer Placing Vendor placing
18-Nov-16

9. Considerations for choosing Equity Fundraising Structure
Amount to be raised
Reaction of market
Certainty of Funds
Timing
18-Nov-16

10. Debt Funding Loan single lender Syndicated loan Debt Securities
loan stock (issue to Seller)
Listed Bonds (good credit rating, large amounts)
high yield bonds (growth companies, high interest rates)
18-Nov-16

11. Characteristics/Advantages of Debt Securities
Broader investor base
Tradeable
Covenants
Interest rate
18-Nov-16

12. Characteristics/Advantages of Loans
Flexibility
Currency (James speak later)
Publicity
Renegotiation
Size of Borrower
18-Nov-16

13. Alternative Finance vs. Traditional Debt Finance
Advantages of Corporate Mini-Bonds
Raise profile of the brand
An additional source of funds
Customer engagement loyalty
Time and cost
Flexibility of commercial terms
Potential increase in customer spend
Potential Investors:
Shareholders
Customers
General Public
Potential disadvantages or issues
Certainty of success/amount raised
Press attention/reporting
Compliance with regulation