James Steel is a Partner at Peel Hunt LLP, a leading corporate advisory and broking house focused on mid and smaller cap companies. He has worked exclusively in the life sciences sector for nearly 15 years closing multiple capital raises and strategic M&A transactions.
Investors capitalise a company with one objective in mind: to get a return on their investment.
So, whilst Venture Capitalists, business angels and other types of investors may not look for an exit in the first few years of a start-up, they will require some type of liquidity event to put cash on the table. Exits provide capital to start-up investors, which can then return the money to their limited partners (in the case of Venture Capitalists) or to the investors themselves (in the case of business angels). If the return is sufficiently robust, this may encourage further investment in additional, early-stage Life Sciences companies.
This ‘How To’ session will explore this fascinating, and for most companies, commercially essential aspect of their corporate progression covering all stages of company development, whether they be start-ups or more mature companies with a transaction in their business plan.
Our experts will provide a practical ‘How To’ guide on:
- When is the right time to exit?
- Trade sales: A buyer takes over the start-up using cash or stock as a compensation
- Floatation / IPO: A company floats on a stock market, selling a significant number of their shares in the process to institutional and non-institutional investors. IPO's can provide large sums of capital to all parties involved (founders, early employees and investors)
- When and why do IPO’s make sense?
- Which exchanges are likely to yield the best performance: NASDAQ, AIM, Euronext and other markets are potential vehicles for floatation
- What happens post-IPO?
- How do you progress from a VC/PE based environment to more institutional investors?
- Mergers & Acquisitions: These transactions can imply a merging with a similar but larger company or a merger of equals to create increased critical mass. Public companies that have suffered a technology failure but still have development cash represent good reverse targets
- How to go about it - Is there a role for advisers?
- Go to market: Companies that can establish a solid business model and scale might choose to stay independent and reinvest the profits in the company whilst avoiding the public markets and the obligations that come with it