Lodha Capital Markets is a leading boutique investment bank that offers corporate financial advisory services. It has decades of experience in M&A advisory, private equity, capital raising, and valuations across various sectors. The document discusses Lodha's transaction services and process, competitive advantages like domain expertise and access to investors, and provides examples of past transactions including advising on the sale of a family-owned industrial hose manufacturer to Parker Hannifin Corporation. Testimonials from past clients praise Lodha's ability to maximize deal value and its dedication.
Lodha Capital Markets is a leading boutique investment bank that offers corporate financial advisory services. It has decades of experience in M&A advisory, private equity, capital raising, and valuations across various sectors. The document discusses Lodha's transaction services and process, competitive advantages like domain expertise and access to investors, and provides examples of past transactions including advising on the sale of a family-owned industrial hose manufacturer to Parker Hannifin Corporation. Testimonials from past clients praise Lodha's ability to maximize deal value and its dedication.
Lodha Capital Markets is a leading boutique investment bank that offers corporate financial advisory services. It has decades of experience in M&A advisory, private equity, capital raising, and valuations across various sectors. The document discusses Lodha's transaction services and process, competitive advantages like domain expertise and access to investors, and provides examples of past transactions including advising on the sale of a family-owned industrial hose manufacturer to Parker Hannifin Corporation. Testimonials from past clients praise Lodha's ability to maximize deal value and its dedication.
A leading boutique investment bank offering corporate financial advisory services with several decades of experience across mid-sized and large businesses. Services offered include: M&A/ joint venture advisory Capital raising (private equity advisory) Valuations, restructuring, etc. A sector agnostic investment bank with vast experience in manufacturing, retail, consumer products & services, technology, business services, media, etc. Ranked as Indias 6 th Most Active Financial Advisor for Private Equity for CY 2013 and 6 th Most Active Financial Advisor for M&A for CY 2012 as per Venture Intelligences League Tables
2 Well positioned to cater to mid-market investment banking needs Comprehensive Transaction Offerings 3 Transaction Services Mergers & Acquisitions PE/VC Capital Raising Joint Ventures Advisory Services Valuations Corporate Restructuring Business Analysis and Modelling Due Diligence Reviews Transaction Process 4 Planning & preparation stage Information gathering Get a better understanding of the business Building a credible business case/ understanding acquisition criteria Preparing investor presentation and business plan Identifying key transaction issues and finalizing transaction strategy Approaching potential investors/ targets Identifying potential investors/ targets and approach them Initial discussions Share/ receive investor presentation, business plan and other information Management meetings, plant visits, etc. Negotiation & signing term sheet Negotiation of valuation and other key terms with interested investors/ targets Final selection of the investor/ target Signing of non-binding term sheet/ MOU/ LOI Due Diligence, Final Negotiation & Closing DD preparation and managing the DD process Negotiation and finalization of definitive agreements Transaction structuring Deal closure involving completing certain conditions post which funds are received from the investor/ consideration is paid to the target Select Clients 5 Advantage 6 Domain Expertise Manufacturing Retail & Consumer Healthcare Services Technology & Media Cross Border Experience M&A JV Entry Approval
One-Stop Financial Services Corporate Finance Management Consulting Assurance and Accounting Extensive Experience Ranked as Indias 6th Most Active Financial Advisor for Private Equity for CY 2013 and 6th Most Active Financial Advisor for M&A for CY 2012 as per Venture Intelligences League Tables Specialise in mid-market deals Advisors You Can Trust Strong repeat business Frequent referrals and excellent client testimonials including from clients where we had failed deals Partner attention to all transactions; each deal is important to us Enjoy the confidence of several mid-sized corporates and PE funds to represent them as their advisors Loyal towards the client and not the transaction Strong Transaction Preparation and Execution Capabilities
Ability to help the client present a credible and compelling business case to investors and thereby maximise valuation Given our mid-market focus, we have the ability to understand the mindset of promoters of small to mid-sized companies and addressing their concerns appropriately Anticipate potential challenges in a transaction and suggest workable solutions Wide Investor Access Access to most of the PE/ VC funds including certain obscure investors that are not typically on the radar of other bankers Seasoned Team
Team comprises seasoned professionals having strong academic and professional credentials with significant experience Why Us? 7 1 3 2 Extensive Experience 8 Leading boutique investment bank with experience across sectors Private equity investment from Rs. 750 mn Sale of majority stake to Undisclosed amount Strategic investment in a new restaurant venture by erstwhile co-founder of the Punjab Grill restaurant chain Undisclosed amount Strategic investment in Impresario owner of popular coffee and fine dine brands like Rs. 400 mn Assisted in identifying, evaluating and partnering (MFA) with Strategic investment from KOWEPO (part of KEPCO, $ 39 bn South Korean Power Co.) Sale of GP Goenkas controlling stake in Andhra Cements to (Pioneer Gas Power Ltd) Rs. 2,330 mn Rs. 2,340 mn Acquisition of 85% stake in Poland based Rs. 1,250 mn (popular global dim sum restaurant chain) 1 9 Leading boutique investment bank with experience across sectors Minority stake sale to USD 2.5 bn Acquisition of minority stake in Tempra Inc., USA based packaging company Undisclosed amount Undisclosed amount Acquisition of 26% stake in Undisclosed amount Acquired by Undisclosed amount Acquisition of 51% stake in L&T Infocity Infrastructure Ltd Undisclosed amount Sale to Parker Hannifin, USA Sale of majority stake to WEB 18 Internet Arm of Rs. 360 mn Rs. 900 mn (Bigtree Entertainment) Private equity investment from Jawad Group: India franchisee of Rs. 500 mn Extensive Experience 1 10 Leading boutique investment bank with experience across sectors Acquisition of Shree Digvijay Cement Co. Ltd. Acquisition of assets of Pt. Maspion Stainless Steel, Indonesia Acquisition of Owens Brockway (India) Ltd. Undisclosed amount Undisclosed amount Undisclosed amount Partner search for coffee shop chain and advisory on franchise arrangement with Acquisition of Tulsipur Sugar and one unit of Dhampur Sugar Acquisition of assets of Conradty Group, Germany Undisclosed amount Undisclosed amount (Balrampur Chini Mills) Extensive Experience 1 11 For someone who has never been able to understand the world of numbers (like most chefs), I could not have done any better than to have Lodha on my side. LCM, besides being thorough professionals in their fields, were rock solid partners all throughout the working of my acquisition who saw to it that I was well covered, protected and fought genuinely to see that I got the best possible deal. Post the deal, today, they are friends and are always around whenever I need their advice or help. Without a doubt, I can say this, that I could not have been better represented. Thank you guys. Moshe Shek, Director - Moshe's Fine Foods Pvt. Ltd. With Lodha, we were able to present our business case in an effective way to investors. We went through many ups and downs during the fund raising process, but their persistence and commitment eventually helped us find the right partner in the TV18 Group. Ashish Hemrajani, Founder and CEO Bigtree Entertainment Mirah Group has worked very closely with LCM over multiple transactions over the last few years. LCM blends its in-depth F&B market knowledge with superior client service to deliver value to all aspects of the transaction. I see them as dependable advisors willing to make relentless efforts to achieve best results. Gaurav Goenka, Director Mirah Group This is the first acquisition for Rishabh and it was great to have Lodha as our advisors. They added significant value and their knowledge and experience helped us successfully complete the acquisition in a foreign land whilst dealing with government authorities. Their team has been impeccable and we look forward to expanding our relationship with the firm. Narendra Goliya, Promoter and MD Rishabh Instruments 2 Advisors You Can Trust 12 Jawad Group : India franchisee of We were very impressed with the way Lodha executed the deal. Their team is dedicated, focused and very talented. They have deep understanding of the consumer space in India and were instrumental in our successful fund raise. R. Ramakrishnan, Group GM Jawad Business Group Have found comfort and trust while working with Lodha. Their strong deal making experience was very useful in strategising and executing our transaction with USD 2.5 bn Graham Packaging. Puneet Deora, Director Graham Blowpack Pvt. Ltd. Lodha executed the deal very efficiently and more importantly helped us get a value which was way beyond our expectations. Jimmy Marker, Owner Markwel Hose Industries 2 Advisors You Can Trust 13 Markwel was a family owned mid-sized business in operation for over two decades. The promoters had spent a large part of their lives to establish the company as Indias largest industrial hose manufacturer. Despite their strong understanding of the business, the M&A environment was new to them and they were uncertain about the deal process and its intricacies. We handheld them through the entire transaction process and helped in: Determining a fair value for their business Presenting their business case in a professional manner to global giants such as Eaton, Parker Hannifin, etc. Bringing multiple buyers to the table and thereby creating the required deal tension (price competition) Negotiating the deal - price, terms, share purchase agreement, etc. Designing and implementing a carve-out of a small business from the company that the promoters wanted to continue to operate themselves and which was, in any case, not relevant to the ultimate buyer
Lodha executed the deal very efficiently and more importantly helped us get a value which was way beyond our expectations Jimmy Marker, Promoter Markwel Hose Industries
Markwel Hose Industries Sale to Parker Hannifin Corporation, USA Target: Markwel Hose Industries Acquirer: Parker Hannifin Corp., USA Year: 2005 Deal value: Rs. 1 bn Stake: 100% Type: Inbound M&A Today, Markwel forms part of Parker Hannifins (USD 12.3 bn group) successful Indian operations 3 Strong Transaction Preparation and Execution Capabilities: Case studies Sale of a Family Owned Business to a Global Giant 14 Om Pizza & Eats India is the master franchisee in India for Papa Johns Pizza (worlds # 3 pizza chain), Chilis (leading casual dining chain) and The Great Kabab Factory . It is promoted by Bahrain based Jawad Business Group which is a USD 560 mn multi-brand franchisee company for over 60 retail brands.
We were one of the few investment banks in India that recognised the potential of the organized restaurant business in India and helped Om Pizza to raise growth capital from TVS Shriram Growth Fund. Our involvement ranged from evolving transaction strategy, preparing investment collateral for investors, approaching investors, assistance in negotiations, restructuring and deal closure. Important value additions were : Helping reshape the business strategy and operating model
Target: Om Pizza & Eats Acquirer: TVS Capital Year: 2010 Investment: Rs. 500 mn Stake: Minority Type: Growth Capital Large format stores for QSR Pizza category Fewer stores Profit visibility not clearly evident Smaller size stores with focus on delivery Aggressive roll out Clear path to profitability Original plan Our inputs Investment of Rs. 500 mn by India franchisee of 3 Strong Transaction Preparation and Execution Capabilities: Case studies Raised Growth Capital for Indian Master Franchisee of Papa Johns Pizza (Worlds # 3 pizza chain) (1/2) 15 Preparing a compelling business case and presenting to investors Negotiating the deal - valuation, terms, definitive agreement, etc. Assisted in designing and implementing a challenging restructuring exercise critical to deal closure Restaurant business of Om Pizza was housed under different companies. The investor required consolidation of all the restaurant business under Om Pizza as a condition precedent for making the investment Given that the restructuring was required to be speedy, tax efficient, FEMA compliant, etc. it was a very challenging restructuring exercise. We eventually helped build and implement a design that met the above objectives and was to the satisfaction of the investor Guiding them through the legal and financial due diligence process
"We were very impressed with the way Lodha executed the deal. Their team is dedicated, focused and very talented. They have deep understanding of the consumer space in India and were instrumental in our successful fund raise. R. Ramakrishnan, Group General Manger - Jawad Business Group
Target: Om Pizza & Eats Acquirer: TVS Capital Year: 2010 Investment: Rs. 500 mn Stake: Minority Type: Growth Capital Investment of Rs. 500 mn by India franchisee of 3 Strong Transaction Preparation and Execution Capabilities: Case studies Raised Growth Capital for Indian Master Franchisee of Papa Johns Pizza (Worlds # 3 pizza chain) (2/2) 16 Indias leading electrical and electronic instrumentation player Rishabh Instruments Pvt Ltd., based in Nashik, acquired 85% in Lumel S.A. Lumel is one of the leaders in the European market in the manufacture of industrial automation equipment and aluminium pressure castings. It is among the top 3 players in the industrial automation equipment market in Poland with a ~20% market share. It clocked revenues of USD 27 mn for calendar year 2010. We advised Rishabh on the entire transaction starting from initiating dialogues with the Polish Ministry of Treasury to preparation of binding bid, negotiating the definitive agreement, negotiating with existing lenders in Lumel, raising acquisition finance, transaction structuring and closing the deal. Key tasks included: Creating a business plan for Lumel based on Rishabhs vision for the company Evaluating the business plan, synergies and risks to arrive at the valuation Working out a competitive binding bid Negotiating the price, deal terms and share purchase agreement with the Polish government Advising on implications of rights and obligations (of Rishabh and the Polish government) contained under the share purchase agreement and suggesting alternative solutions Assisting in designing an efficient transaction structure Negotiating a social package with the trade unions and handling political sensitivities around employee-related issues Negotiating with existing lenders of Lumel to continue with the loan and arranging acquisition finance
Target: Lumel S.A (owned by Polish Government) Acquirer: Rishabh Instruments Year: 2011 Deal value: Rs. 1,250 mn (EV) Stake: 85% Type: Outbound M&A Advisors to Rishabh for acquisition of 85% stake in Poland based Lumel S.A in a privatisation process
3 Strong Transaction Preparation and Execution Capabilities: Case studies Cross-Border Acquisition of a Poland Based Company (1/2) 17 Guiding the company through the legal, accounting and tax due diligence review and advising them on implications of critical findings Identifying professional firms for legal, accounting and tax services in Poland It was a very challenging deal to execute given that: We had to work out a competitive binding bid on the basis of very limited information that was shared by the Polish Ministry of Treasury and negotiate valuation and deal terms with them We had to deal with the political sensitivities and employee issues that typically arise in a privatization deal It was difficult to convince the banks to fund the transaction because of the relatively larger size of Lumel compared to Rishabh This was an outbound M&A transaction that required a thorough understanding of Indian and Polish regulations (foreign exchange, tax, etc.)
"This is the first acquisition for Rishabh and it was great to have Lodha as our advisors. They added significant value and their knowledge and experience helped us successfully complete the acquisition in a foreign land whilst dealing with government authorities. Their team has been impeccable and we look forward to expanding our relationship with the firm. Narendra Goliya, Promoter and MD, Rishabh Instruments
Target: Lumel S.A (owned by Polish Government) Acquirer: Rishabh Instruments Year: 2011 Deal value: Rs. 1,250 mn (EV) Stake: 85% Type: Outbound M&A Advisors to Rishabh for acquisition of 85% stake in Poland based Lumel S.A in a privatisation process
3 Strong Transaction Preparation and Execution Capabilities: Case studies Cross-Border Acquisition of a Poland Based Company (2/2) 18 Target: Bigtree Entertainment (BookmyShow) Acquirer: WEB 18 (Network 18 group) Year: 2007 Investment: Rs. 360 mn Stake: Not disclosed Type: M&A - Portfolio investment by strategic buyer, akin to Venture Capital Bigtree Entertainment (owner of www.BookmyShow.com) started as a movie and entertainment ticketing company providing software, call centre, door delivery options, cash collection services to multiplexes. Their business was essentially driven on a cost plus model. Its three founders had a vision to run an aggregator model that would provide an online platform for booking movie tickets across multiplexes. It was an untested and untried business model in India. We helped them raise capital merely on the back of a business plan. We assisted them in: Conceptualizing the business plan Showcasing the deal to several venture capitalists and strategic investors Obtaining offers from several potential investors, including Ticketmaster, the world's leading live entertainment ticketing and marketing company Evaluating the various offers and helping them finally negotiate and sign up with WEB 18 the internet arm of Network 18 With Lodha, we were able to present our business case in an effective way to investors. We went through many ups and downs during the fund raising process, but their persistence and commitment eventually helped us find the right partner in the TV18 Group. Ashish Hemrajani, Founder and CEO Bigtree Entertainment
BookmyShow is the largest ticketing website in India. It has also won the ET Excellence Award (2012-13) in the Startup of the Year category Bigtree Entertainment Advisors for sale of majority stake to WEB 18 Internet arm of 3 Strong Transaction Preparation and Execution Capabilities: Case studies Fund Raising for a Venture which is now Indias Largest Online Ticketing Company, www.BookmyShow.com Thank You