1 – Leveraged transactions:
- OBO, Owners Buy Out: buy out of a company by its shareholders with one or several investment funds.
- MBO, Management Buy Out: buy out of a company by its executives and also some employees.
- MBI, Management Buy In: buy out of a company by an external individual.
- BIMBO, Buy In Management Buy Out: buy out of a company by external individuals and its executives.
Usually, these operations are quite complex and involve investment funds as additional shareholders and sometime mezzanine lenders and also raising senior debts toward banks.
2 – Investment of a financial partner:
- By divestiture or by new capital issue.
3 – Share capital restructuring:
- Regulate dissensions or conflicts between shareholders.
- Shareholders exit.
- Shareholders or top executives share capital increase (relution) or decrease (dilution).
- Access to the equity for top executives or specific employees.
- Assets or shares transfers.
4 – Capital raising:
- Presentation of the project (preparation and delivery of an information memorandum, business valuation), selection of qualified investors and assistance to the negotiation.
Generally, 3E acts as an orchestra conductor:
- outlines and formalizes the project,
- chooses the projet team,
- writes a information memorandum and a business plan,
- searches for the adequate partners,
- negotiates the price, the conditions and the calendar,
- develops the financial arrangement or engineering and chooses or propose the additional advisors with its customer,
- assists the due diligence, the financing search and the writing of the legal documentation,
- closes the deal.
Retainer fees to start the process, write an information memorandum and advise the customer.
Success fees representing a percentage of the total transaction value at the closing.