Selling of Public Internet related Company’s Subsidiary Company

Within the various services that Bloom Capital offers, we are most experienced with selling corporations/businesses within the TMT sector. Here, we are going to use one of our past transactions as an example.

Background

• The parent company decided to sell one of their subsidiary companies as a business strategy.
• The subsidiary company was showing a deficit in their operating profit. However, the company has a large number of clients, as well as a profound knowledge of the field.
• Since the operating profit was showing a negative figure, the task at hand is to evaluate the value of the existing customers, and the knowledge of the business that the company possesses.

As a result, we were able to find a buyer who gave the company a reasonably high valuation, and even now the value of the company is increasing under the management of the buyer.

Internet related Venture Company’s Capital Alliance

Within the services that Bloom Capital offers, we are 2nd best in the M&A area. The example below is the advice we gave to a Venture Company’s Capital Alliance.

• Bloom Capital began providing consulting services to the target in question a few years ago. The company started off showing a deficit and now it has grown to show an operating profit of several hundred million yen.
• Bloom Capital also holds some of the company’s stock.
• On the other hand, it was necessary to create a strategy to strengthen the brand, increase customers and employees in order for the company to continue to grow.
• Here, we started to research which potential capital alliance candidates will be able to satisfy the 3 requirements above.

As a result, we succeeded in achieving a business alliance and a capital increase through third party allocation of shares, and the expected impact on the operating profit summed up to an annual increase of several thousand million yen. Even now, the two companies still maintain a good relationship with each other.

Advice for TMT related public company’s corporate turnaround

Financial Advice given to TMT related Company X

1. Get rid of unprofitable business
2. Increasing capital by sponsor
3. Financial Assistance from banks (DES)

Focusing on the 3 points listed, we drafted a corporate turnaround strategy. In addition to the typical M&A advice given when negotiating with the sponsor, we provided support for the negotiating with banks for financial aid. The size of the transaction was over 1 billion yen EV base.

Sell Side Advisory on Corporate Turnaround Phase

Advice given for sell side M&A. A sell based on bidding process. Financial advice for transferring of share from company X’s 100% subsidiary company, a medium sized financial company in the process of business restructuring, to Company Y (Financial company in the First Section of Tokyo Stock Exchange). The sale of a “Goods Business”, and the size of the case is over 150million yen EV base.

Buy Side Advisory for Large Corporation Producing Office Goods

Buy side advisory service. Enterprise Value evaluation included. Financial advisor for Company X, a large domestic office supplies and goods manufacturer, on Company Y, medical related company’s increase of capital by 3rd party allocation of shares. We covered this case by focusing on giving advice on the evaluation of Company X’s stock.

TMT related Public Company’s sell of their Subsidiary Company

Sell side advisory service. The selling of IT related public company X’s game development subsidiary company M&A advice (bidding process). By utilizing the Internet / Contents related company’s unique decision making process, we decided to proceed with the bidding process. The transaction size is below 5 million yen EV base.

Others

• Sell Side M&A Advisory (absorption-type merger, TOB, DES compromise): financial scheme for merger of two Financial Institutions
• Sell Side M&A Advisory (negotiated transaction of selling of minority shares): Internet- Related Company
• IPO support (part I, portion of part II, whole series of support as main security company): Health Care Related Company
• Private Equity Investment by MSCB: Bio Related Company
• Financing and Capital alliance by MSCB: Bio Related Company
• Buy Side M&A Advisory (increase in capital and stock acquisition): Company buying and selling Used Cars
• Buy Side M&A Advisory (transfer of stocks): SEO Related Company
• Buy Side M&A Advisory (transfer of stocks): System Development Company
• Buy Side M&A Advisory and Corporate Turnaround Advisory (by underwriting CB): TV Shopping Company
• Private Equity Investment by underwriting of Capital and DES: Pet Insurance Related Company
• Private Equity Investment by convertible preferred stocks: Korean Internet Related Company
• Financial Consulting (allocation strategy, etc. included overall financial strategy consulting): Largest Domestic Department Store