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Case Study

Capital Investment in a smart meter company

230793

At a provider of innovative system technology for municipal utilities

A provider of systems technology for municipal utilities faced significant challenges: low liquidity, dissatisfied shareholders, and problems with planned growth. The company responded by preparing new financial and pitch documents, selecting an M&A advisor, and initiating due diligence. Successes include a seven-figure lease commitment, a doubling of the company’s value, and an exclusivity agreement with private equity.

q

Company

  • Provider of innovative system technology for municipal utilities, incl. financing, administration & operation​
  • Revenue in the mid-seven-digit range in 2023, planned sales in 2026: €80m; purchase of two production lines, not yet financed​
p

Challenge

  • Low liquidity and a dissatisfied shareholder who wants to withdraw​
  • Planned growth, but a lack of financing and bankable equity​
  • Decision taken to provide statutory funding for the technology from 2023​
m

Goals

  • Starting the investor process and fundraising​
  • Creating an equity story to attract investors and expand financing​
  • Mandating an M&A advisor and approaching the market​
n

Measures

  • Preparation of all financial and pitch documents​
  • Selection of an M&A advisor​
  • Approaching investors from May, due diligence for core investors from June​
  • In parallel: negotiations with banks and leasing providers​
x

Results

  • Leasing commitment (volume: 7-digit)​
  • Exclusivity agreement with private equity (€50m capital increase achieved)​
  • Signing with core investor​
  • Doubling of the company value to ~ €100m through capital increase​
  • Within 8 months: preparation of all documents, investor search and closing of the transaction​
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