JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 17

Finding funding

pays particular interest in the
composites sector is private
equity (PE). PE firms list a
wide range of different investment criteria on their websites;
assembling as many potential
investors as possible for whom
you hit the criteria sweet spot
is important to get discussions
and ultimately offers into the
right perspective.
PE investment criteria are usually clear: some are focused on
sectors such as manufacturing
and many focus on a geographic
region and certain level of maturity of the business. Typically,
they have an envelope of maximum/minimum size measured
by enterprise value or EBITDA
and specialise in a particular
reason for investment - family
succession, corporate spin-off
or management buy-out. It is
important also to be aware of
how a PE controls its investment once established and the
degree to which it gets involved
in assisting the detailed business
discussions beyond finance. For
PE, and indeed for other types
of investors, it is also important
to be clear about the investor's
exit strategy - what is likely
to be the timing for a typical
investment in the portfolio it
would join and how does that
fit with the timing of events in
the business.
Fund-raising cycle
Preparing for and executing
a fund-raising cycle typically
involves a set of key preparatory
and transactional steps much
the same as if you were looking
to sell the business. In both
cases, an external view and
additional dedicated resources
can speed up the process and
improve the terms of the final
transaction. These steps are the
following:

Establishing a valuation -
With the broad scope of the
composites industry comes
a wide range in valuations,
however, commonalities do
still exist. Key metrics such as
multiples of revenues, profits,
and gross profits can all be
developed with the support of
your advisory team. Take time
to understand the valuations
offered by potential investors
and be cautious of anomalous
high values that can spell trouble later.
Finance sourcing - Meet as
many investors as you can. This
helps you gauge how they act.
Developing a target list of the
most suitable growth capital
sources is strongly improved
by knowledge of the finance
markets, the growth stage of the
business and type of funding
required.
Information memorandum
- Your business must look and
sound attractive. To correctly
convey the attractiveness of
your value proposition to prospective investors, the company
documentation must present
the company in a professional
and credible manner, appropriate to the objectives of the
expected readership.
Negotiations - A key phase
where additional support can
be required is to use appropriate
strategies and tactics to negotiate a successful transaction with
capital providers more used to
this type of deal structure than
a composites manufacturer.
Often a third party can help by
intermediating in the discussions.
Due diligence - While investors will all have their own
due diligence processes, it is
essential to prepare in advance.

Finding funding requires real preparation

Focus

Specialising in business development, strategy formulation
and acquisitions, senior consultant Peter George brings more
than 20 years of management and marketing experience in the
speciality chemicals and advanced materials sector to the FMG
senior team.
Peter has held director and senior management roles at
organisations including Huntsman, Gurit, FORMAX, DYNO and
SCIGRIP. He has an MBA from the Open University in the UK,
as well as an MA in Natural Sciences from the University of
Cambridge, where he specialised in materials science.

A well-prepared secure data
room - a central storage for
financial, operational and
marketing information that can
be used for all due diligence
communications - also gives
a good impression as to how
the business will be run in the
future.
Documentation and closing -
With all terms negotiated and
finalized, strong coordination
of all documentation and deadlines is now required to keep
the deal moving and ensure
things conclude smoothly in
line with the deadline you have
set. Again, a third party can
help maintain the momentum
of this process.
Some final points
to keep in mind
Investors are always comparing
an investment with another
destination for their funds.

N°135 July - August 2020

Your proposal just has to be
more convincing than the
others; it must be more appropriate to the investor's aims and
have well-evidenced answers
to concerns that paint a better
prospect than that painted by
alternative bidders for the same
funds.
There is no such thing as easy
money. The key criterion for
a good partner is a strong underlying business model rather
than a convenient contact.
A partner who seems easy at
the start may well be difficult
during the process or later in
the ownership if there is not
enough scrutiny at the outset.
Challenging and experienced
investors will be the ones that
move your business forwards.

More information:
http://futurematerialsgroup.com/

/ jec composites magazine

17


http://www.futurematerialsgroup.com/

JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020

Table of Contents for the Digital Edition of JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020

Cover
Edito
“We include composite materials in order to offer the most efficient protection”
Contents
NEWS
In brief
Agenda
BUSINESS
China - What is the impact of the Covid-19 crisis on chemical groups in China?
Startup - UBQ introduces the greenest thermoplastic material
Finance - Finding funding
MANUFACTURING
Simulation - Virtual design of a mediacal auto-injection
Method - The importance of FRP process specifications
FEATURE AERONAUTICS - Can composites help restart activity?
- Additive manufacturing: Printing continuous carbon fibre in true 3D
- Thermoplastics: A thermoplastic T-profile with effective lay-up in one shot
- Maintenance: Automated adaptive machining of aircraft composite structures
- OOA: Out-of-autoclave manufacturing processes for composite aerostructures
- Process: Overmoulded interfaces for composite aircraft parts
- Bonding: The Bondline Control Technology
- Interview: “Don’t miss the shift to Green and the chance to make a positive impact on the environment!”
- Testimonials: Aeronautics: now what?
- Natural fibre: A satellite panel reinforced with natural fibres for cleaner space exploration
SOLUTIONS
Autonomous human flight - Sky is no limit for inventors
Building & construction - Building reality with composites
Aerospace - Lightweight liner-less carbon composite subscale cryotank
TECHNOLOGY
Design - Developing CFRP components for machine tools
Inside the lab - Advanced Composites Laboratory,c Texas State University
FEA - Optimization approach for designing composite components
Index
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JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Cover
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 2
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Edito
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - “We include composite materials in order to offer the most efficient protection”
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 5
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Contents
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 7
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - In brief
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 9
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 10
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Agenda
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - China - What is the impact of the Covid-19 crisis on chemical groups in China?
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 13
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Startup - UBQ introduces the greenest thermoplastic material
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 15
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Finance - Finding funding
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 17
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Simulation - Virtual design of a mediacal auto-injection
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 19
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 20
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 21
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Method - The importance of FRP process specifications
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 23
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - - Additive manufacturing: Printing continuous carbon fibre in true 3D
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 25
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 26
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - - Thermoplastics: A thermoplastic T-profile with effective lay-up in one shot
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 28
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 29
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - - Maintenance: Automated adaptive machining of aircraft composite structures
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 31
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 32
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - - OOA: Out-of-autoclave manufacturing processes for composite aerostructures
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 34
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 35
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 36
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - - Process: Overmoulded interfaces for composite aircraft parts
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 38
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 39
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - - Bonding: The Bondline Control Technology
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 41
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 42
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 43
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - - Interview: “Don’t miss the shift to Green and the chance to make a positive impact on the environment!”
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 45
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - - Testimonials: Aeronautics: now what?
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 47
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 48
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 49
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 50
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - - Natural fibre: A satellite panel reinforced with natural fibres for cleaner space exploration
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 52
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Autonomous human flight - Sky is no limit for inventors
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 54
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 55
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Building & construction - Building reality with composites
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 57
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Aerospace - Lightweight liner-less carbon composite subscale cryotank
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Design - Developing CFRP components for machine tools
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 60
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 61
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Inside the lab - Advanced Composites Laboratory,c Texas State University
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 63
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - FEA - Optimization approach for designing composite components
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 65
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - Advertisers
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 67
JEC COMPOSITES MAGAZINE - Issue #135 - July/August 2020 - 68
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