Advisory services
Our advisory services include:
Initial Public Offerings
An IPO is not an exit; it’s just the next step on your company’s journey. For senior management, the IPO marks the beginning of a new phase. As a CEO, CFO, or board leader, your job evolves: you’ll take on a nearly full-time investor relations role in addition to your existing responsibilities, with thousands of new shareholders watching closely.
You need sound advice about the capital raising process itself, but you should also seek guidance on how to help your company transition into this new reality. An advisor can help you answer questions such as: What level of detail should we provide in our press releases? Which investor communication and social media platforms should we use? Should our CEO be our only spokesperson?
An IPO is an exercise in expectations management: you need to set yourself up for future success. As they say, you will not get a second chance to make a first impression.
Directed Issues of New Shares
Directed issues pose special challenges and pitfalls related to the timing of communication and ensuring non-participating current shareholders are treated fairly. Recently, regulatory authorities in Sweden emphasized that a company’s first choice when raising capital should be a rights issue, where existing shareholders have a pre-emptive right to participate, rather than a directed issue.
Nevertheless, a directed share issue, potentially through an accelerated bookbuilding process, can be an attractive solution if the company and its advisor can identify new or existing investors willing to subscribe to new shares on reasonable terms. Depending on the size of the issue, a prospectus may or may not be needed. Your advisor must have a strong investor network and the experience to help you navigate the intricacies of this type of transaction.
Rights Issues
Over the last decade, Danish and Swedish growth companies have carried out more than 100 pre-emptive rights issues annually. Rights issues are popular because they have a high likelihood of success and can be underwritten (guaranteed) to ensure that the company receives at least a minimum amount of proceeds. For many growth companies, this security is essential.
However, because rights issues are so common, they have become a commodity. Investors and underwriters expect certain deal terms to conform with the market, and you may find yourself competing for attention with 5-10 other companies conducting rights issues simultaneously. Your advisor must know how to put together an underwriting consortium, negotiate deal terms, and help you stand out from the crowd.
Private Placements and Pre-IPOs
Many growth companies manage their Series A or B financings without a financial advisor. But as the amounts increase and your investor audience becomes more demanding, retaining a financial advisor is often a good idea. An experienced advisor can help you negotiate terms with venture capitalists, potentially saving you from future complications. We advise on term sheets, share purchase/subscription agreements, and new shareholder agreements, where the devil is truly in the details. We also assist in setting up meetings, refining your investor presentation, and rehearsing it with you until you truly shine.
Uplisting
Large institutional investors often hesitate to invest in companies listed on alternative marketplaces such as First North, Spotlight, and NGM. In fact, many institutional investors are restricted from doing so. As your company matures, it may be advantageous to consider a listing on the main market to access this critical investor segment. However, any uplisting decision should begin with a careful evaluation of the pros and cons. What benefits could the company gain from uplisting, and are they worth the associated costs? Is the timing right? And crucially, do you have the right investors in place to support the transition?
At SCA, we have extensive experience guiding companies through the main market listing process and managing companies already listed on these markets. If you’re considering an uplisting, we encourage you to reach out. There may be preparatory steps to consider even at this early stage.
M&A
The investment case is the cornerstone of any potential change of control scenario. While M&A mandates encompass a variety of technical tasks—such as identifying potential buyers, organizing the data room, developing a sales process (potentially including a structured auction), and preparing the executive team for management presentations—the most critical task is crafting a compelling investment case. This case must be precisely tailored to resonate with the potential buyer pool, ensuring that all supporting materials—budgets, forecasts, presentations, business plans, and more—are strategically aligned to reinforce it. At SCHMIDT Capital Advisors, we bring decades of global M&A experience to the table. Having served as buyers, sellers, and advisors, we understand the complexities of these transactions from every angle. Reach out to us for M&A advice rooted in firsthand expertise.
