{"id":7619,"date":"2020-02-25T13:36:36","date_gmt":"2020-02-25T13:36:36","guid":{"rendered":"https:\/\/marc.deschenaux.com\/?p=7619"},"modified":"2023-05-14T18:39:25","modified_gmt":"2023-05-14T18:39:25","slug":"fundraising-or-ipo-incubator-a-modern-transaction-financing-tool","status":"publish","type":"post","link":"https:\/\/marc.deschenaux.com\/fr\/articles\/fundraising-or-ipo-incubator-a-modern-transaction-financing-tool\/","title":{"rendered":"FUNDRAISING ou IPO INCUBATOR Un outil moderne de financement des transactions"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"7619\" class=\"elementor elementor-7619\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9a270ed elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9a270ed\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fdd9dc8\" data-id=\"fdd9dc8\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1f5b7b3 elementor-widget elementor-widget-text-editor\" data-id=\"1f5b7b3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>Probl\u00e9matique:<\/h2><p><strong>Une probl\u00e9matique courante en entreprise est :<\/strong><\/p><ul><li>du point de vue de l&#039;investisseur : comment investir sur une courte p\u00e9riode et r\u00e9aliser un b\u00e9n\u00e9fice significatif ?<\/li><li>du point de vue de l&#039;entrepreneur ou de l&#039;entreprise : comment financer une grosse op\u00e9ration et se d\u00e9barrasser des investisseurs imm\u00e9diatement apr\u00e8s ?<\/li><\/ul><p>More often than not, when acquiring or merging, it is possible to use the cash of the target company to pay off investors.<\/p><p>Thus, transaction financing answers both these needs allowing the investor to make a quick profit in case of successful transaction.<\/p><h2>D\u00e9finition<\/h2><p>A Fundraising Incubator is a company financing corporate transactions such as a merger, an acquisition, a securities private placement or an initial public offering (IPO) against an equity participation and a put option on this equity participation to the issuer itself.<\/p><p>The put option, issued by the same issuer as the equity participation, ensures the investor that, in case of success of the transaction, it can resell this participation to the issuer immediately after.<\/p><p>Today, transaction financing is the exclusive privilege of all investment banks who make huge profits therefrom.<\/p><h2>Objection<\/h2><p><strong>One could wonder why not a simple loan?<\/strong><\/p><p>The main reason is that under most jurisdictions, loans are limited to a certain interest rate percentage, called the usury rate, generally less or far less than 25%. In Switzerland, the federal law limits this usury rate at 15% and makes any interest rate set above that limit unlawful and thus, not payable!<\/p><p>Les investisseurs souhaitent g\u00e9n\u00e9ralement un retour sur investissement plus \u00e9lev\u00e9, car tout investissement de financement de transaction repr\u00e9sente un degr\u00e9 de risque important, du moins du point de vue de la perception du march\u00e9.<\/p><h2>Risk of a Transaction Financing Investment<\/h2><p>Le risque li\u00e9 \u00e0 un investissement de financement d&#039;op\u00e9ration est directement li\u00e9 \u00e0 la probabilit\u00e9 de succ\u00e8s de l&#039;op\u00e9ration.<\/p><p>Therefore, as a rule of thumb, we can say that the transaction financing investment risk is directly linked to the quality of the agreements binding the parties to the transaction and to these parties\u2019 willingness to execute the transaction properly.<\/p><h2>Rules of Prudence<\/h2><p><strong>Les r\u00e8gles \u00e9l\u00e9mentaires de prudence dans une op\u00e9ration de financement d&#039;investissement sont les suivantes :<\/strong><\/p><ol><li><b>Commitment from both parties.<\/b><br \/>Having a commitment from both parties to the transaction provides the safest conditions to the investment. However, this is rare and mostly impossible. Commonly, a transaction financing agreement is entered into between one party to the transaction and the representative of the investors.<\/li><li><b>R\u00e9duire le temps de l&#039;investissement au minimum.<\/b><br \/>Cette r\u00e8gle plut\u00f4t simple a de nombreuses implications, de la logistique aux conditions juridiques. Le repr\u00e9sentant des investisseurs, qui doit \u00eatre un financier ou un homme d&#039;affaires mais pas un avocat, doit regrouper les fonds sur un compte sous son contr\u00f4le et v\u00e9rifier les consentements et la volont\u00e9 des parties de proc\u00e9der.<\/li><li><b>Legal terms agreed before start.<\/b><br \/>Have all the transaction (key) terms agreed upon before the financing takes place. The investor or his representative must ascertain that the parties are in full agreement on all (key) terms of the transaction.<p>While the parties might not be able to bear the cost of all agreements drafting before the transaction financing takes place, they can surely produce a complete term sheet for each agreement needed for the transaction.<\/p><p>Any party receiving the transaction financing can also take the commitment toward the investor that no other additional or new (key) term shall be required from the other party after the financing takes place, preventing thereby the classic last minute requirement that makes the transaction fail.<\/p><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Problematic: A common problematic in business is: from the investor\u2019s standpoint: how to invest for a short period of time and make a significant profit ? from the entrepreneur\u2019s or the company\u2019s point of view: how to finance a large transaction and get rid of the investors immediately afterwards ? More often than not, when &#8230; <a title=\"FUNDRAISING ou IPO INCUBATOR Un outil moderne de financement des transactions\" class=\"read-more\" href=\"https:\/\/marc.deschenaux.com\/fr\/articles\/fundraising-or-ipo-incubator-a-modern-transaction-financing-tool\/\" aria-label=\"En savoir plus sur FUNDRAISING or IPO INCUBATOR A Modern Transaction Financing Tool\">Lire la suite<\/a><\/p>","protected":false},"author":1,"featured_media":7686,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wds_primary_category":3,"footnotes":""},"categories":[3,49],"tags":[],"class_list":["post-7619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-beginners"],"_links":{"self":[{"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/posts\/7619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/comments?post=7619"}],"version-history":[{"count":0,"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/posts\/7619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/media\/7686"}],"wp:attachment":[{"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/media?parent=7619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/categories?post=7619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marc.deschenaux.com\/fr\/wp-json\/wp\/v2\/tags?post=7619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}