Capital Raise Advisory Services

Client: Middle-market US based steel metal building manufacturer ($145mm revenue 2008)

Requirement:

Company had defaulted on a senior secured loan of $27mm with Citibank and required recapitalization.

Approach:

AxeaGroup SWAT Team spent 90 days in classic turnaround/restructuring of the company that included closing of two divisions, shutting down a plant, and downsizing to reduce fixed overhead and bring the company to cash flow positive operating status.

End Result:

AxeaGroup conducted an informal private equity auction leading to an eventual 51% of the company being acquired by a Chinese steel manufacturing group for $7.5mm; Citibank converted $15mm debt into equity and settled on defaulted loan.
 

Client: A $25mm revenue Bolivian Competitive Local Exchange Company (CLEC)

Requirement:

US private equity group required due diligence prior to acquisition and needed a turnaround management team for 2nd largest Bolivain national facilities based telecom carrier.

Approach:

Inter-American Development Bank (IDB), multilateral bank in Washington D.C. had lost confidence in previous ownership and was uncomfortable about their $30mm senior term loan covenants. AxeaGroup principal became Chief Financial Officer for one year, revamped balance sheet, financial operations, enhanced HR department, restructured sales department, renegotiated existing debt.

End Result:

Entity became EBITDA positive after six months, commitment funding for $10mm obtained, renegotiated restructuring of $30mm senior term loan and other trade payables. U.S. based private equity group eventually paid-off IDB loan for $7.5 million.
 

Client: A $20mm Canadian eCRM company

Requirement:

Board member had lost confidence in CEO related to due diligence on prior acquisitions. Required fourth round of financing would be a 1st time outside the main stakeholder group (hedge fund investor) who had financed rounds 1-3.

Approach:

Provided thorough, rapid assessment of balance sheet, financial integrity and reporting. Proceeded to rebuild entire accounting department and back office reporting structure in 90 days. Due diligence forensic audit performed on previous acquisitions.

End Result:

With a revamped new internal financial reporting process, new outside auditor was hired to perform annual audit. A private placement memorandum was completed, with industry comps. Fourth round $6mm raise completed during a difficult capital markets environment. Company merged with publicly traded entity.
 

Corporate Finance Services

Client: US digital imaging multinational entity publicly traded in Australia

Requirement:

Original founding management team had been extracted from the Board and required corporate finance services to launch a hostile take-over.

Approach:

A Co-advisor with bankruptcy expertise was brought in with AxeaGroup, Board was replaced, company was placed into bankruptcy and original founding management team obtained technology rights which were transferred into a new start-up.

End Result:

AxeaGroup brought in a new Korean based investor, new entity was capitalized, company today has offices in the US, Europe and Asia. Company was sold to Noritsu Corp. (Japan) for $25mm.
 

Client: International Internet Kiosk & Telecom Software Services Entity

Requirement:

Management team with multinational experience required expansion capital and a strong Board of Advisors.

Approach:

Provided business plan improvements, investor presentations, repositioning of strategy to include future acquisition of a $12mm multinational division spin-off of a French multinational manufacturing division.

End Result:

Completed 1st tranche equity financing of $1mm, introduced new Board of Advisors which resulted in subsequent financing and acquisition of multinational division spin-off. Company filed bankruptcy after losing major customer.
 

Business Development Services

Client: International Private Equity Fund specializing in reverse-mergers

Requirement:

Origination of private equity pre-IPO transactions from Latin America.

Approach:

3 years of traveling in Latin America to interview in-country financial advisors, CPA's, attorney's business associations, attendance of private equity conferences to generate interest in USA listed reverse-merger transactions.

End Result:

Established fund representatives offices in Sao-Paulo and Rio de Janeiro, Brazil, Santiago, Chile, Mexico City, San Salvador, El Salvador, and Lima, Peru.
 

Client: Fortune 500 U.S. Communications Company specializing in Defense, Civil and Commercial applications

Requirement:

Government services division seeking to expand its international project base with interest in the Middle East.

Approach:

AxeaGroup studied the region and leveraged its in-country networks to establish a presence for the company.

End Result:

AxeaGroup awarded representation in Egypt and has opened a rep office in Cairo, with pursuit of additional project and representation opportunities in the region.
 

Client: International LEO Satellite Services entity

Requirement:

International business development assistance to create In-Country national service providers in the Middle East and Europe.

Approach:

Launched trade promotion trip to Saudi Arabia and Germany with Lehman Brothers. Established meetings with strategic partners, in-country investment banks, and government authorities.

End Result:

Strategic partnership for assembly work established in Saudi Arabia and distributorship relationship established with Deutsche Telecom, strategic investment by Raytheon.