Postioning for Public Offering-1 --Renaissance consultants

Positioning for Public Offering-1

As business consultants assisting companies to package and market the business or businesses--whether it be an IPO or to exit a business by the sale of companies or company--not seeing the business as a product is a serious detriment to accomplishing the goal. Our business consultants will help tailor the packaging in a way that is acceptable to a potential IPO or potential suitors for the sale of the company. Below is a case history (taken from Renaissance files) that demonstrates our business consultants' expertise.

Type of Company:	International Provider of Electronic Sales Management Systems, to Pharmaceutical Companies
Type of Ownership:	Private Joint Venture Between Founder and Fortune 100 Company

Problem:	Company, in first 18 months, had achieved rapid sales growth, but was losing money. The corporate partner who had provided initial financing in the form of loans became disenchanted and reluctant to continue funding. An outside investor or a public offering was thought to be the answer, but management did not know how to attract additional funding or demonstrate how the company would become profitable.
Action:	Engaged to determine how to bring in an outside investor. Quickly determined that most of the loss was due to royalty and interest charges from the joint venture owners themselves. Developed a 3 year business and operating plan demonstrating that the company could profitably grow by a factor of 10 with an infusion of additional capital and a restructuring of the licensing agreements.
Results:	After reviewing the plan, the corporate partner decided to fund the venture and converted its debt to equity. Annualized sales increased 500% and pre-tax profit went from a loss to a 33% profit in 18 months. The company subsequently completed a public offering and attained a market valuation of over $1,000,000,000 in four years.