Argon’s capabilities and offerings extends beyond traditional investment banking that also includes, in addition to fund raising and M&A advisory, scanning and identifying markets, opportunity assessment, re-defining business, performance scalability and improvement
With demonstrated capabilities in the Investment Banking spectrum, Argon’s services goes beyond the traditional investment banking offerings and has often engaged with its clients from the pre-feasibility stage to scanning & identifying markets, sizing the markets, defining the opportunity, evaluating and testing the concepts, and assessing the investment requirements before working on and taking the investment pitch to investors fraternity – financial and strategic – for fund raising and M&A advisory. Our relationship with our clients continues beyond the deal life-cycle, and we have also provided our expertise in the post-funding & acquisition stage, whereby we work on the strategy blueprint to ensure the post-fund operational and financial metrics are achieved
Argon’s team has combined experience of more than 30 years in the deal life-cycle space – strategic and financial – and has worked on transactions that includes domestic, cross border and international. Our Investment Banking process includes two very important fundamental pillars:
Having built a network of more than 300 investors globally over the years in addition to our network partners, Argon has created global investor map according to the following criteria:
- Stage of Investments
- Early stage – we have access to Incubation Fund, Seed Capital, Angel Investors and Venture Capital
- Early Growth Stage – we have access to Late Stage Venture Capital, Early Growth Private Equity Funds
- Late Growth Stage – we have access to Private Equity Funds, Family Offices, Strategic Investors
- Mature Stage – we have access to Private Equity Funds, Family Offices, Strategic Investors
- Ticket size
- Low of US$300,000
- High of – there is no upper limit
- Investment Type
- Equity
- Debt – Mezzanine Funds, Debt Funds
- Sectors
- Consumer Delivery (healthcare, hospitality & tourism, education, retail, consumer durables, consumer non-durables, food & beverage, and e-commerce platforms across sectors)
- Cement and Infrastructure
- Other Manufacturing
- Real Estate
- BFSI
- Geography
- India
- Bangladesh
- Nepal
- South-East Asia
- Middle East
- Africa
- Europe
- North America
The robust engagement culture ingrained in the DNA of Argonites makes us stand apart in the advisory ecosystem. By understanding the problem statement and end objectives of our clients, we structure the solution framework and test the hypothesis across the framework that includes testing the business model, operating model, revenue and cost strategies, their inherent ability to scale up and capitalize on market opportunities, synergies that are likely to be realized at revenue, operating and financial level, and the cash it can generate over the assessment period post fund infusion and / or post-merger. Based on this, we assess the overall long-term strategic perspective and the value it is likely to deliver post fund infusion and / or post-merger in terms of EPS accretive. This helps us to customize our advisory service to our clients including transaction structuring
With a strong base of global investor network and with a global execution foot print across transactions from early stage to mature stage investments, Argon’s team, in their earlier stints, have successfully executed numerous mandates
While fund raising could be challenging, Argon’s involvement with its clients not only throughout the deal life-cycle but also during the pre-deal and post-deal phases ensures that our clients comfortably walk through this rigorous journey. With our expertise, focused approach and tailor-made services in this arena, Argon is very well placed to craft a perfect solution for its clients during all the engagement phases:
Pre-Deal Engagement Phase –
Detailed discussions with our client to test the strength of their business model; aligning the goals and objectives with their broader vision; testing the merits of their business plan; deciding whether a market, concept and financial feasibility would be required; conducting pre-due diligence
Deal Engagement Phase –
- Collateral Stage – Testing the business model assumptions based on market assessment, demand-supply, competition, and opportunity that can be capitalized; feeding these assumptions to build a detailed financial & valuation model; preparing the investor presentation and writing the investment thesis; structuring the transaction by exhausting available alternatives; writing the summary term sheet, and presenting possible exit opportunities for the prospective investors
- Go-to-Market Stage – Shortlisting prospective investors based on specific criteria and Argon’s proprietary investor map; establishing contacts with the investors and sharing a no-name teaser to communicate the crux of the investment opportunity; collating investor feedback, answering their preliminary queries and setting up meetings for road show
- Transaction Evaluation Stage – Conducting road shows with various investors; detailing out the investment thesis; and discussion of the assumptions used in the financials; managing the queries from the investors and providing clarifications post road show; facilitating the access to any other documents that the investors would need from our clients to complete the evaluation process
- Negotiations and Term Sheet Stage – Post evaluation, discussing and negotiating on the valuations; assisting in drawing the term sheet having transaction structure, exit opportunities, and key terms & conditions
- Due Diligence Stage – Helping the clients throughout the due diligence process initiated by the investor; collating queries and feedback from the due diligence team; discussing with the client and preparing responses to each of the queries raised by the due diligence team; ensure there are no gaps; make suitable changes in the documents
- Transaction Closure Stage – Post due diligence, facilitating the clients and investors to draw up the definitive agreement and ensure the key terms mentioned in the term sheet are taken into consideration; closing the transaction
Post-Deal Engagement Phase –
Supporting our clients in the post-funding phase to ensure the broader KRAs – operational and financial metrics – presented at the time of fund raising are met in the ballpark range; advising clients if any tweaks need to be done in their business plan and strategy to achieve these broader KRAs
Leveraging on our existing strong base of global investor network and our partner network along with the relationships built with the corporate, we have worked on both buy side and sell side mandates
Similar to our approach in fund raising, our involvement with our clients in the M&A advisory space is also spread across the three engagement phases. With the core fundamental objectives of value creation and value un-locking, Argon has the much-needed expertise to assess and deliver these objectives for its clients in this space throughout the engagement journey:
Pre-M&A Deal Engagement Phase –
Detailed discussions with our client to assess their need for an acquisition or a divestment / sell-off and testing this need hypothesis with the strength of their business model, market reach, operational capabilities, financial efficiencies, and aligning them with the broader vision, goals and objectives – all we need to find out here is that if such a strategic move will strengthen the client’s market position, create value and bring in earnings efficiency. It may even happen that post this engagement phase (based on our tailor-made advisory service), the client may put off their M&A plans until such time it’s not in their favour. This only re-affirms our clients’ faith in Argon’s advisory capabilities. At this stage, if we are moving to the next engagement phase, we also decide whether a market, concept and financial feasibility would be required based on the core M&A objectives as mentioned above; and also conducting a pre-due diligence with the client’s stakeholder ecosystem to set the tone of the hypothesis
M&A Deal Engagement Phase –
- Collateral Stage – Based on the defined M&A objectives, we test the feasibility in terms of market, competition, client’s operational capabilities to scale up, opportunities that can be capitalized, and the synergies it’s likely to bring post M&A. Post this feasibility test, we feed these assumptions to build a detailed financial model, prepare the investor presentation and write the investment / divestment thesis. At this stage, we also structure the transaction by creating possible alternatives, write the summary term sheet, and highlight the potential value of the transaction
- Go-to-Market Stage – Shortlisting prospective buyers / sellers based on specific criteria and transaction objective, and Argon’s proprietary investor map for strategic investment / divestment; establishing contacts with the buyers / sellers and sharing a no-name teaser to communicate the crux of the transaction opportunity in terms of market synergies, operating synergies, cost efficiencies, and improvement in earnings; collating feedback from the prospective buyers / sellers, answering their preliminary queries, and obtaining EOI and setting up meetings for road show
- Transaction Evaluation Stage – Conducting road shows with various buyers / sellers; detailing out the investment / divestment thesis; and discussion of the assumptions used in the financials; managing the queries from the buyers / sellers and providing clarifications post road show; facilitating the access to any other documents that the buyers / sellers would need from our clients to complete the evaluation process
- Negotiations and Term Sheet Stage – Post evaluation, discussing and negotiating on the valuations; assisting in drawing the term sheet having transaction structure, lockin period, and other key terms & conditions
- Due Diligence Stage – Helping the clients throughout the due diligence process initiated by the buyer (in case of sell side) / or the client (in case of buy side); collating queries and feedback from the due diligence team (buy side / sell side); discussing with the clients and preparing responses to each of the queries raised by the due diligence team / providing feedback & queries to the seller; ensure there are no gaps; make suitable changes in the documents
- Transaction Closure Stage – Post due diligence, facilitating the clients and buyers / sellers to draw up the definitive agreement and ensure the key terms mentioned in the term sheet are taken into consideration; closing the transaction
Post-M&A Deal Engagement Phase –
Supporting our clients in the post-M&A phase to ensure the broader KRAs – synergies, operational and financial metrics, and earnings accretion – presented at the time of making the pitch (buy side / sell side) are met in the ballpark range; advising clients if any tweaks need to be done in their business plan and strategy to achieve these broader KRAs