RGG Capital

RGG Capital participated in the negotiation process on the M&A transaction with a foreign manufacturer of lifting equipment. 

The transaction involved the acquisition of 100% Russian business.

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KEY RESULTS:

RGG Capital was in charge of developing a comprehensive methodology to determine, rank, select Russian clusters with a high economic potential. 

Additionally, the chosen clusters should be had to host industrial enterprisers with large energy consumption. 

• Improvement of the client’s financial literacy and his preparation
  for complex negotiations;

• Deal closure in 7 months from the beginning of work with the client;

• Signing of a shareholders' agreement with a 30% premium to
  the customer’s business compared to the initial purchaser’s price.

• Creation of customized ranking model of all subjects of the Russian Federation, except those located East of the Urals and in the North Caucasus region;

• Interviews with experts that bring their expertise in order to optimize the ranking, methodology and fine-tune the region economic forecast.

• Detailed description of 12 clusters selected by the client that completely satisfied all stated needs and criteria.

RGG Capital provided a complex support in the search of industrial sites for a CIS engineering company. The aim was to create a joint venture with a Russian partner and localize production facilities. 

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The main objective was to establish contacts and support the process of negotiations regarding future JV.

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KEY RESULTS:

RGG Capital was in charge of raising equity financing for a Russian provider of services related to the oilfield development. 

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Range of services included a building of financial model with further business valuation, preparation of investment documents, protection of client's interests during negotiations.

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• Identification of machine-building companies with special production requirements, valuation of its financial performance, and ranking by industrial fit;

• Analysis and assessment of synergies and risks from the partnership;

• Elaboration of a business plan for a JV with a local partner.

• Evaluation of the investment project, and indicators of its financial effectiveness;

• Determination of the external funding required, and the company’s 

  share to be proposed to the investor;

• Acquisition of a minority stake by the Russian investor.