DIRECT INVESTMENT

PAIN POINT

A group of former top executives from some of the most relevant Retail and Branding companies worldwide ask us to help them meet family offices and operators in Mexico to find partners and co-investors in the Round A for the development of an international and disruptive retail operation.

SOLUTION

In a first roadshow to Mexico the entrepreneurs had the opportunity to have one-to-one meetings with the main and most important retail operators in the country and informative breakfasts and lunches with other potential investors and family-offices.

IMPACT

As a result of this work, the entrepreneurs were able to introduce the co-investment opportunity to more than fifty potential investors and conclude in the best terms with some of them co-investing in the Round A.

PAIN POINT

Family office aiming to acquire a significant stake in a family business listed company. They wanted us to approach the seller as their representatives to avoid any mispricing in the offer and protect their identity.

SOLUTION

We carried out a valuation of the company and make an estimate of the bid price range. Negotiate the terms of the deal and coordinate the acquisition, payment and communication of significant acquisition to the regulator authorities.

IMPACT
The family office avoided the emotional implication in the valuation and negotiation process at the same time than protected its identity on the preliminary contacts and meetings avoiding a higher price due to their high acquisition power.

PAIN POINT

Business family from Mexico with interests in several sectors and a large concentrated position in a single listed stock. After a preliminary analysis we concluded that there was a large concentration risk in a specific sector, country and currency. The family asked us to help them to establish a divestment strategy to reduce their concentrated position. On top of that, the holdings have been donated at a low tax cost raising significant capital gains.

SOLUTION

We offered different formulas for the concentrated position, coordinating with several international investment banking teams and a leading tax advisory firm.

The solution included a combination of block trades, derivative structures to hedge the evolution of the concentrated stock and currency hedges and second way out financing.

Additionally, we coordinated a reversal donation and a subsequent demerge with the tax advisors to mitigate the tax effect on the capital gains.

IMPACT

With the proposed solution the family initiated a conversation with other family branches who agreed to jointly reverse the donations to reduce the tax bill and prepare the shares for a block sale in an ordered manner.