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The Northbridge process is unique because it goes beyond the transactional aspect
of traditional services. Our process stresses on the following areas: |
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“Preparing for equity capital”- Most companies are not prepared internally to deal
with savvy and slick institutional investors and investment banks. In the process,
they give out information and sign off their equity at prices and conditions that
come back to haunt them in the future |
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“Maximizing value” |
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“Expertise” – We know the capital market industry and its players. Without the expertise
on your side, you may get the funds you want but it will never maximize your value |
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“The Power of Advice” – It is in power of our advice that our clients maximize the
value of their equity. For example, we will look at valuation angles like mergers,
buyouts, placements in tranches etc to maximize the value of the promoter’s equity |
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“Benchmarking” – Instead of using plain vanilla benchmarks, we actively look for
benchmarks around the globe that will shed the correct value on your stock as compared
to similar plays around the world |
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Founders/Companies usually look at global capital as a source of funds and often
end up selling out at prices that may be attractive to them. They rarely think about
the motivation of the investor which could be anything from an India entry, another
spoke in their global hub etc. We understand the motivations of institutional investors
and global partners and bring that experience and advice to maximize valuations
while at the same time making sure that quality of investors is not compromised
and our clients are not “pricing themselves out of the deal” |
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Most clients are structured the way they are for administrative convenience or local
regulations or bank credit. Most have never seen their business from a valuation
perspective. Our first input is to put the business in formats that provide the
best valuation given how investors look at these businesses. For example we may
“splice” a real estate company into a Commercial, Residential, IT Parks and Hospitality
company and within each specialized company create “SPVs” to find the best global
partners. Such structuring achieve both the best valuations and brings in specialized
partners in the business |
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Identify and introduce domestic and foreign institutional investors to founders
and companies to enhance the quality of investors and create a fund “pipeline” |
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Find the “right” valuation in the market by increasing institutional holding and
enhancing research coverage by brokerage houses and research analysts that matter |
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Assist with the strategies, mechanisms and plans to be geared up for the institutional
investors |
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Prepare the company in terms of valuation, liquidity etc. Institutional investors
use certain objective benchmarks like liquidity and market capitalization to enter,
and you must get ready to meet these benchmarks. We work with client to prepare
Valuation roadmaps |
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Not all institutional investors may fit into the kind of investors our clients would
like to hold your shares. We cut the “down time” because we know the investing style
and holding periods of various institutional investors |
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Suggest the institutional investors that would be interested in the company’s stock.
Different institutional investors have different levels of interest in a company
because of the parameters they work under and it is critical to identify and focus
on only key institutional investors |
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Advise you on the level of transparency which you will need to maintain in your
books and personal dealings in order to build investor confidence |
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Most companies are not prepared internally to deal with savvy and slick institutional
investors and investment banks. In the process, they give out information and sign
off their equity at prices and conditions that come back to haunt them in the future |
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