» When preparing the business plan and for the first corporate financing via the High-Tech Gründerfonds and subsidies, Portus Corporate Finance was involved as start-up coach. Everything went very well. We got to know the Portus team as being very committed and pragmatic. «
Optimal funding structure: We prepare your financing and work together with you to implement it. We use the full range of funding options and rely on proven partners – solid funding is the foundation for the success of any company.
Range of services
Investors buy shares of companies and participate in the value and future success of these companies by owning risk-bearing equity. The investors’ goal is to increase corporate value, in order to generate a profit from trading their shares.
Equity can either be invested as private equity or as venture capital. Private Equity investors are looking for companies that are already established and have a stable cash flow. In contrast, Venture Capital is often provided for young growth companies, whose increase in value is still associated with high risks and uncertainties.
Mezzanine capital is a mixture between equity and debt. It combines individual characteristics of both forms of financing, and is characterized by its subordination to traditional (senior) debt.
Depending on the amount, mezzanine capital can be classified as equity for accounting and as debt for taxation. Thus, companies can increase their equity ratio and strengthen their balance sheet structure.
A major advantage of mezzanine financing is the flexibility of the arrangement, for example, with need-based retrieval options, performance-related remuneration, changing interest rates during the time to maturity, and flexible repayments.
Supporting our clients’ day-to-day financial management, we take care of controlling and reporting. Working together with tax consultants and accountants we can support your accounting management and preparation of financial statements. We also accompany the auditing process. We will arrange committee meetings (supervisory board, general meeting) and perform the necessary follow-ups and assist in corporate organization and administration. Other areas of our operational activities include Investor Relations, Treasury, Risk Management and Insurance Management.
This is a temporary capital commitment, contractually specified, and at a fixed interest rate. Regarding repayment, debt is senior to equity. Classical debt is granted by banks. Debt financing is also feasible in cooperation with credit funds and other investors.
In leasing agreements, the lessor provides the lessee an asset in exchange for a fixed leasing rate to be paid during a determined lease term.
Stock financing is an alternative to classical loan financing. The goal of stock financing is to capitalize the goods in stock by releasing the liquidity bound there. As a result, the company can obtain a continuous line of funding, while the goods in stock serve as collateral.
For order financing, funds can be provided to secure the processing of an order. In this way, a company can be enabled to finance the necessary materials goods and third-party services that are necessary for fulfilling a contract.
The state grants numerous subsidies to companies, as do various development banks. These funds can be awarded as grants, concessional loans or loan guarantees.
Based on your needs, we create a feasible financing concept that meets your goals by combining different financial instruments. To generate interest among investors, we will collaborate with you to develop the optimal investment proposition. The cornerstones of such a proposition include clear growth markets, a realistic and compelling product portfolio, development projects, and a well-functioning team and existing networks.
Together with you we will develop a robust financial plan. This will reflect your business model and the projected development of the company.
The business plan includes a concise description of your business model, of your company, of the objectives to be financed and of the commercial impact of the project(s) to be funded.
In addition, we can create summary documents as required – from investment memoranda to presentations.
Based on the intended financing concept, we will produce a list of suitable financing partners and investors and make initial contacts with non-confidential material such as an anonymised teaser.
We also can accompany and advise you in negotiations with investors, from initial contact until contract closure. As part of this we can also actively support and administer the due diligence phase.
A Stuttgart-based company (turnover: EUR 30 million) required financing of EUR 10 million for a development project. Following a recommendation, an initial interview with Portus took place in February and in March a contract for the support of the financing was completed. In addition to a fixed monthly remuneration, the contract was mainly based on a performance-based fee.
After evaluation of the investment project, together with the company, we created an exposé and a financial plan which explained the exact capital needs including potential repayment schemes.
At the same time we prepared a financing concept, selecting potential investors from our established networks in venture capital, private equity and family office sectors. After 6 weeks of preparation we began to approach the investors. Because of the familiarity with the processes and due to our long-standing business relationships, we were able to arrange appointments quickly.
After discussions with about 10 investors a financing structure emerged, consisting of an investment from an investment company, a bank loan and subsidies. In about three months, this contract was finally drafted and signed. The financing process was completed within six months.
In corporate succession as well as purchase and sale of companies, we have a wealth of experience and a broad contact network available to help you. We follow a holistic approach and accompany you and your company in all phases of the process. We will support you in all challenges as well as in all detail questions.
In dialogue with you, we identify your precise needs and ideas concerning planned transactions. On that basis, we conceptualize a transaction process, which corresponds to your requests. After identifying a pool of potential candidates via Portus networks and research, we will approach the most relevant targets. Thereafter, we will also support you during all further negotiations. From the first informal meetings to deal closing, we are the partner at your side.
Based on existing company documents and in close cooperation with you, we generate the necessary documents for the upcoming transaction: investment memoranda with information about your company, products manufactured, markets and competitive landscape, business plans, as well as financial planning.
Based on collectively defined criteria, we create a longlist of potential buyers or target companies, which we will be happy to approach for you.
In case a potential buyer has explicitly expressed his interest in your company or if you are interested in a particular target, negotiations about a possible transaction begin. We will cover the whole process until the closing of a contract. Generally, a Due Diligence becomes necessary during the negotiations, in order to get to know the target in detail. We will support you with preparing the necessary documents and/or take care of the execution.
Using widely acknowledged methods of business valuation, we will determine the value of your company or that of your target.
Acting as external, independent consultants, we offer fairness opinions for planned transactions.
An entrepreneur in the electronics industry had been advised by his tax advisor that the question of succession must be addressed in due time. One of our senior partners took over the project and carried out an analysis of the company’s actual situation.
In the first step, evaluation of the company certain weaknesses were discovered and remedied. Following this, all necessary documents for the sale process were created. The exposé, designed to inform prospective buyers, was developed by Portus. In addition, company documents, such as financial statements, detailed reports concerning the contracts, the staff structure, as well as details about suppliers and customers were generated for potential acquirers.
As a second step, an internal valuation of the company was created. In conversation with the business owner we reached a fundamental understanding regarding the distribution of tasks between company and Portus. In addition we developed an ideal presentation of the company to be used during the selling process and defined realistic financial goals and a time horizon for the transaction. Subsequently, concrete steps for finding a suitable successor were discussed.
By directly approaching potential candidates out of the existing data pool and the Portus network as well as by placing advertisements in industrial magazines and in the internet, a pool of 30 candidates was compiled. Our senior partners then assessed each one’s technical and financial capabilities. Seven suitable successors were presented to our client. Our senior partner supported and moderated the talks between the business owner and the potential successors.
The sales process took about 18 moths from the mandate being issued until the contract was finally signed. We attach great value to close cooperation with our client’s accountant and banks. In order not to cause concern to employees and customers, all relevant activities were conducted with discretion and in utmost confidentiality.
» Portus was of great support in preparing and realizing our seed round. It was always fun to work with them. I really learned a lot from their attitude to manage people, they always positive and optimist attitude, and their knowledge of scenes behind startups. Portus qualities were exactly what Sablono needed. «
We advise and support companies in all financial and business-related issues, be it setting the company up, be it mastering growth phases or facing restructuring processes. We cover a wide range of possible topics, e.g. strategy, planning, organizing, controlling, and finance.
As a founding entrepreneur you can revert to our expertise in corporate strategy, market analysis, development/project planning, corporate organization/project management, insurance/ occupational pensions, risk management, compliance management, employee stock ownership plans, and management information systems.
A special focus of our expertise is financing. Together with you, we determine your needs, create a financing concept and guide you through the entire financing process, including the preparation of documents needed, investor communication and contract negotiations.
When it comes to financial planning and budgeting, controlling, analysis, figures, as well as reporting and investor relations, we support you with developing and establishing efficient processes and tools.
Case Study – Coaching
Based on several years of research and two patent applications, a group of Berlin scientists decided to create a company as a spin-off from Charité, a public medical school. For coaching and support, Portus was recommended to the founders and the mandate was funded through a consultancy subsidy, so that any effects on the founders’ budget were minimized.
Over the next few weeks the agenda included corporate strategy, business modelling and financing. For this purpose, regular meetings and telephone calls took place. At the same time, the development of the business plan and the financial forecast progressed. Portus introduced the founders to several investors and supported them in the process of applying for BMBF (German Ministry of Education and Research) grants. All questions regarding the start of a business were addressed.
Following the company’s establishment, coaching on important management questions was initiated. Based on many years of experience, we werw able to provide the right solutions.
Case Study – Consulting
By simultaneously setting up three subsidiaries, the complexity of a service company had increased significantly. As a result, the business manager needed a sparring partner and somebody to also implement investment controlling.
action & result
Based on a detailed activity and time plan, Portus was awarded the contract. An integrated financial forecast for the holding and a comprehensive reporting system was developed within three weeks. In addition to all the detailed information, the reporting tool also calculates key performance indicators which together with the derived forecast can be displayed graphically. Simultaneously, the tool relates them to their target values. Several months after completion of the project, Portus received another assignment for supporting the holding’s budgeting.
Accreditation as a coach
Portus Corporate Finance is accredited by KfW Banking Group as a management consultancy. We also operate as a coach for the High-Tech Gründerfonds (High Tech Startup Fund). Moreover, we work together closely with federal and state institutional funders.
We are happy to support you with grant applications for management consulting, even prior to a formal contractual relationship.
» As a part-time manager, Mr Fink is in charge of our finance department. This includes planning, controlling, preparation of shareholders’ meetings and contractual matters. The collaboration is highly efficient and has proven to be excellent. «
Professionally executed financial management with complete flexibility: We will take care of the everyday financial matters of your company. If requested by the customer, we will make one of our employees available – back office included. For large-scale projects we are able to involve additional consultants. This is a professional approach and has proven to be very profitable.
We provide support in long-term financial and investment decisions. In order to do so, we perform analyses to obtain a comprehensive view of your company and together with you, we can develop plans for the future (corporate planning and rolling forecast).
A special focus of our expertise is financing. We identify the needs of your company, create financing concepts and conduct the entire financing process, including the preparation of the necessary documents, approaching investors and negotiating with them, as well as selecting appropriate funding programs.
As part of the operational financial management we take care of controlling and reporting. In cooperation with tax consultants and accountants we support you in bookkeeping and accounting management, the preparation of financial statements and also accompany their examination. We prepare committee meetings (supervisory board, general meeting) and perform the necessary follow-ups. Besides, we assist in corporate organization and administration. Other areas of our operational activities include Investor Relations, Treasury, Risk Management and Insurance Management.
A five-year-old telecommunication company has successfully completed a mezzanine financing round. The agreement required compliance with milestones and specific financial covenants.
The investors, an international consortium, demanded the introduction of professional controlling and reporting structures. At the same time the company grew from 12 to 25 employees. The company’s founder contacted Portus and within two weeks, we took over controlling/reporting, business administration, as well as investor relations. Portus also took responsibility for preparing monthly reports and quarterly Supervisory Board meetings.
Our initial service led to three years of cooperation until the company was sold to a strategic investor. On average, during that period Portus’ Mr Fink took care of the company’s activities for one and a half days per week. When the sale of the company was prepared, the involvement of Mr. Fink increased to about four days a week for a period of approximately two months.
» Portus, especially Dr Jonathan Turner, provided us with excellent support when it came to creating our business plan, deciding on the strategic alignment of our business and initiating financing rounds. We profited from Dr. Turner’s profound knowledge in R&D, but also from his experience with business development in drug companies with global operations. Besides, Dr Turner acquired expert know-how as a managing director of biotech firms, and he has an extensive network of pharmaceutical companies and investors – all of which is invaluable for epinamics GmbH, be it during negotiations with potential partners, or for business development. «
Portus’ expertise reaches from product acquisition and divestment to strategic collaborations in life sciences and medtech industries. Here too, we can accompany our clients at all stages from contact to deal.
Using widely acknowledged methods of project valuation, we will determine the value of your project.
As part of the portfolio management we analyze your current portfolio and optimizing opportunites.
We use the market and competitive analysis to create a comprehensive overview of the market situation and the current competitors. Based on these analyses we discuss the further strategies.
In addition to the identification of potential collaboration and licensing partners or potential buyers, we will accompany you through the negotiation process.
A biotech company had developed a novel technology platform, with broad potential applications in healthcare and consumer markets, but lying outside the strategic focus of the initiator.
A strategic analysis of the dvelopment and commercialization scenarios for the platform was completed, and on this basis the creation of a spin-out company, which fully acquired the asset, was recommended. Invour advisory capacity we structured the spin-out and brought the right investors/acquirers to the table. After foundation, we continued to advise and operationally support the new company in project management, business development and in planning and execution of a cooperation strategy.
Through our advice and support, the initiator company was able to effectively monetize a non-strategic asset. In the spinout a focus was set on the therapeutic applications of the technology, while in parallel via business development activities the medtech, consumer and industrial applications were successfully partnered (in EU and USA). After successful further pharmaceutical development by the spin out, we sought international partners for a therapeutic application, and negotiated a term sheet for a two digit million dollar deal with an international player.