Venture Capital
Investment banking services for clients in the telemarketing, direct mail, printing, fulfillment, data base management and e-commerce industries. Services include divestitures, acquisition searches, valuations, leveraged buyouts, financings and financial advisory services.
Divestitures. Kimbery International Financial Services (KIFS)offers a full range of professional services for the selling shareholders of a company or business unit. KIFS's involvement allows clients to operate from a position of strength and obtain the best possible transaction. The divestiture process involves a thorough assessment of value, the preparation of a comprehensive and confidential descriptive memorandum on the selling company, the identification of the best strategic or other buyers, the design of the transaction structure, negotiation of the key terms and documentation and oversight of the closing process. Acquisition Searches.KIFS's services to companies interested in growing through acquisition are based on a staged process, beginning with an understanding of the client’s objectives. We works closely with the client to develop an acquisition team capable of working through the issues that make for a successful acquisition.
KIFS locates the targets based on agreed upon criteria, assists in the evaluation of targets, and in structuring, negotiating and closing the transaction.Valuations/Fairness Opinions. Going concern valuations prepared by KIFS are used to determine the fair market value of assets for a range of purposes: buy/sell agreements, stock options and warrants, estate and gift taxes, litigation and ESOPS. The principals of KIFS provide clients with valuation advise that is timely, accurate, objective and defensible. Fairness opinions are provided to boards of directors of public companies or their committees to provide comfort that a certain transaction is indeed fair to the stockholders of the company. Private Placements and Financings. We works in the private financing market with banks, finance companies, insurance companies, pension funds and others. When a company’s growth outstrips its line of credit, We can bring in additional lenders. When banks want more capital in the business and shareholders want to avoid excessive dilution, We arranges for mezzanine financing, such as subordinated debt with warrants or convertible preferred stock. We also assists in structuring management buyouts, where current management takes ownership in a company or business unit and current shareholders obtain liquidity.
Corporate Development/Financial Advisory. We will act as advisor to management or boards of directors in connection with financial or business strategy issues. Assignments normally begin with a business unit strategy audit. Recommendations are then made regarding the best approach to maximizing shareholder value, such as increased investment for market share, divestiture, re-engineering or liquidation.
About Private Equity
Private equity is a distinct asset class among alternative investments. It has grown rapidly over the last fourteen years, with annual global commitments increasing from US$18 billion in 1990 to an estimated US$235 billion in 2005*.
Historically, the growth in this asset class has been driven by the ability of top performing private equity firms to generate returns that significantly outperform comparative quoted markets over the medium to long term. In addition, private equity has the potential to improve diversification given its historic low correlation with public indices.
Private equity is a generic term for investments in private companies (or public companies where the investment has the character of a private equity transaction). The term “private equity” can broadly be broken down into the following categories:
· Venture Capital;
· Development Capital;
· Buy-Outs/Buy-Ins (though further sub-sets exist).
Venture capital is often used to describe the private equity sector as a whole, but more accurately describes investments made at an early stage in a company’s life.
Development capital is financing provided for the growth or expansion of a company that is breaking even or trading profitably.
Buy-Outs/Buy-Ins are used to refer to different structures in private equity that are applied to established businesses with revenue and profit streams. Private equity managers provide funds to enable current operating management to acquire an existing business or to enable a manager or group of managers from outside a company to buy into the company.
In time, these investments are generally realised either through a listing on a stock exchange, recapitalisation or by way of a trade sale.
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