VC-A Winter 2018 Newsletter

Time to leverage your business for growth?

In spite of a few clouds like the Brexit, a high Shiller PE ratio in the US, a foreseeable cryptocurrency bubble burst (bitcoin and the like) and scattered politico-social issues in countries like Spain (Catalonian’s independence) or Greece (austerity measures), the global economy continues to flash a "green light".
It is the right time for companies to implement growth strategies and to invest into the real economy.
Indeed, one-year Euribor is a 0.18% negative, inflation is contained, and bond yields are historically low despite a major global selloff at the beginning of the year.
 
The corollaries are that financially sound companies can finance themselves at the lowest interest rates worldwide ever seen and that many lenders, desperate for higher returns, are considering buying “riskier” asset classes.
 
To surf the growth wave, savvy entrepreneurs and managers should consider new projects development and buy-outs through alternative financial instruments and methods such as bank guarantees, corporate bonds, debt securitisation, project finance and credit enhancement.

VC-A M&A SUITE

We have launched Version 2 of our Value Creation - Alternative M&A Suite. The CRM now allows us to link eXchange emails to our +33 000 contacts in +22 000 companies, of which +3 500 are investors.

VC-A Agents who wish to access the VC-A M&A Suite can submitting a request by email to become VC-A Associates.

Note: candidates will be taken through an onboarding and compliance process.

Review VC-A's value proposition here.

To join VC-A as an Agent register on-line here.

Amine Tazi

Mr. Amine Tazi joins as a VC-A Partner

We are delighted with the recent appointment of Mr. Amine Tazi, as a VC-A Partner.
 
Mr. Tazi has developped most of his career at French telecom company, Orange, where he reached the position of Vice President Strategy & Planning & Valuation.
 
Mr. Tazi is trilingual, French, English and Arabic. He got his MBA from the London Business School and owns a Master in Telecommunications from Eurecom Institute as well as a Master in Communication Systems from the Swiss Federal Institute of Technology.
 

Mr. Francesc Muro joins as a VC-A Associate Director

Mr. Francesc Muro has recently been promoted from VC-A Agent to VC-A Associate.

Mr. Muro is an automotive industry expert.

Mr. Muro speaks Spanish, English, French, Catalan and German. He got his MBA from IESE Business School and owns a Mechanical and Industrial Engineering degree from the University of Barcelona.

Are you ready for automation?

Much has been published recently about automation and digitalisation. It is becoming ever more critical that senior managers are aware of these concepts and their potential. However, it can often be a challenge to grasp what is needed just to get started.
 
Looking at automation, we are seeing how artificial intelligence and specifically machine learning is changing and, arguably, improving decision making. ‘Big data’ - the massive amount of data from an ever-increasing array of sources - is the fuel that energises learning machines. The machines themselves vary in style and can be complex yet business leaders should not have fear.
Simple and easy to implement techniques do exist making it a surprisingly modest challenge to build basic prototypes. Barriers to entry continue falling, facilitated by a world of open-source utilities and cloud computing. What results is better business decisions that drive improvements in efficiency, accuracy and quality.
 
At VC-A, we believe that all firms should have a clear digital strategy. Often this will address such issues as customer experience or industrial efficiency; behind which is automation. Indeed, current business strategy may not fit the increasingly digital world.
 
Let VC-A’s experts help you define or refine your strategy and prepare you to experience a more productive future.

Consolidation continues in European Automobile Aftermarket

We expect 2018 to continue with the mergers and acquisitions we have witnessed in Europe since LKQ bought ECP in the UK in 2011. In December 2016, LKQ acquired Germany's Stahlgruber, a company with €1600M turnover, buying not only a business but a leading position in the German market.
 
For historical reasons, this is a very fragmented industry, specially in southern Europe, where most individual owners have been attached for years to small family business. Now we see acquisitions of all size companies, while we also see some auto OEM's taking positions in the open equivalent parts market. Namely PSA, Renault and VW are entering this business, which will only intensify the need for consolidation.
 
Some deals are already coming for early 2018 and new candidates continue to be approached.

Blockchain

The number of applications of blockchain in financial services have been flourishing and materializing with concrete use cases. Blockchain increases efficiency, in terms of signing contracts, sharing data with investors, eliminating many process hurdles and improving compliance.
 
One of the potential areas for Blockchain is by making what are generally illiquid investments more liquid. With Blockchain technologies such as Ledger X, it will be the missing link to bring information and valuations to the individual investor.
 
Deployments so far are limited in private equity, mainly in administration and back-office support.  Initial Coin Offering (ICOs) are another potential use of blockchain for private equity managers and will also support startups in their fundraising process. Many initiatives raised also by fund managers to create funds now also through ICOs. Blockchain still have promising future for the Private equity industry although privacy remains a challenge.

Are you the victim of a conspiracy?

Are you unsuccessful in business? Is your company is going through a long streak of bad luck? Do you feel isolated at work? Are people talking behind you back? Do prospects no longer answer the phone?
Chances are that you are the victim of a conspiracy.

Read more...

The Value Creation - Alternative Network

If you run a business, use this group to share ideas around new business development strategies, alternative sources of money, alternative growth strategies and new business models.
 
VC-A Members, Investors, Company Owners, CxOs, Directors and Managers are invited to join.

Some of VC-A current opportunities

OpportunityIdTicketOverviewWho could be interested?
Minority Equity InvestmentUK Family Office€1M+UK FO looking to take minority positions between 1% and 12.5% in companies with good management teams and aggressive growth plansEstablished businesses with an EBITDA greather than £500k
Digital BankDiginacria€7.5M -> €100MA well-established and popular German fintech company is looking to raise up to EUR 7.5m in expansion capital to become the largest fintech bank based in Europe’s single currency area with a truly global reach. Additional assets can be included to build up a strong balance sheet and move into market-makingUHNWI, security traders, VC/PE specialised in fintechs, banks, and financial institutions
Non Performing LoansNPL Fund€5M -> €100MValue Creation - Alternative is looking for investors to set up a regulated non-performing loans fund to acquire bad consumer debt in the kingdom of SpainDistressed funds, hedge funds, HNWI, UHNWI, financial institutions, bad debt recovery entities
Foreign ExchangeFX and Trade Finance€5M -> €100MWe structure finance solutions for international trades involving currency exchange and supplier creditsImport-export agencies, trading companies, lenders
Regulated Funds ManagementCrypto-PIF€5M -> €100MLooking for a partner investor to set up a regulated professional investment fund (PIF) in Malta to raise money through tokenizationEstablished and would-be fund managers, non-EU banks and financial institutions, companies looking to raise funding from institutional investors
Payment ProcessingPSPN/AWe can help you leverage your payments by implementing a payment system platform that will 1) reduce your processing cost and 2) leverage your customer base with cross and up-selling solutions companies processing lots of payment transactions: e-commerce, market places, vending machines, gas stations ... Established PSP looking to upgrade their gateway application
M&A and FundraisingVC-A M&A Suite€250k+We are looking for Strategic Partners and Investors to help us develop VC-A solutions through JV and alliancesHNWI, UHNWI, M&A boutiques, hedge funds, VC/PE, FOs, consulting firms, investment banks
Solar PlantsEMBLITAM€300MWe are looking for investors to develop solar projects in the kingdom of Spain. We have access to a portfolio of more than 12GWp. If you have a solid balance sheet, we can help you monetise itAny company with a strong balance sheet, energy funds, PE
Unicorn StartupsPre-IPO€100k+We trade unicorn shares on the secondary market. Currently on screen: Flexport, Rubrik (Shares owned directly), Kraken (Shares owned directly), BitPay (Shares in an SPV), Eat Just (Shares owned in an SPV), Udemy (Shares owned directly) etc. from $100k investment upMass-affluents, HNWI, UHNWI, hedge funds

About Value Creation - Alternative

Value Creation – Alternative is a Strategy and Investment Advisory firm. We help companies to develop their business through acquisition and organic growth. We accompany our clients throughout the entire life cycle of their corporate development programme: strategy definition, target search, due-diligence, negotiation, transformation map, change management and digitalisation.
 
We are a worldwide network of more than 1,000 seasoned professionals with more than 45,000 contacts and have collectively advised M&A projects worth in excess of US$100B.
 
We support complex strategic and operational business decisions with deep analysis and robust processes. Our methodology is a combination of desk research, interviews and application of our internal know how.

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