http://www.roadtovalue.com/ projectcycle: April 2009 - Current
roadmap: Idea validation,Deal structure
link: www.organext.nl

Situation

Life Science ventures are a special class of investments. Often driven by early stage technology, there is usually a long and uncertain path to bring the product to market. In the case of OrgaNext Research, the situation is different in the sense that the product is a redevelopment of existing compounds. Combined with experienced management and a flexible financing approach, risks have been reduced significantly, while maintaining the attractive upside associated with successful life science products. The objective was to communicate the investment opportunity in a professional and concise manner, in the language that this specific investor base speaks.

Task

Road to Value was engaged at an early stage to prepare all materials required to persuade investors to invest in this life science venture. The objective was to bridge the reality of a life science investor and incorporate their requirements in terms of development approach, structure and financial returns. This lead to a first round financing backed by informal investors. At stage, Road to Value is preparing for a second round financing for OrgaNext Research, backed by substantial progress in the development of NDD.

Action

- Developed financial model (market model, development budget, operational projections, liquidity, valuation, IRR analysis)
- Wrote information memorandum and 4 page teaser
- Developed funding strategy, investor profiling and shortlisting
- Negotiated terms sheet with life sciences seed fund
- Assisted in the deal making with informal investors
- Preparing material and approaching investors for a second round financing

Result

The reality of today's financial markets is mirrored in the life science venture capital industry. Investments takes place at a later stage, reducing risk. Furthermore, innovative business models that do not fit in the mold of vc's and big pharma are not considered. This was also the case with the investment proposal of OrgaNext Research. An appeal by the founder in the Financieel Dagblad generated a lot of interest among informal investors, who recognized the potential and entrepreneurial qualities of the founder. This enabled a first round financing that will enable OrgaNext Research to reach the next value triggers of further positive pre clinical trials, patient organization backing, and positive stance by the FDA. Currently, Road to Value is preparing a second round financing, based on substantial progress in the development of NDD.]]> Tue, 21 Feb 2012 15:18:51 +0100 projectcycle: February 2012 - Current
roadmap: Idea Validation,Deal Structuring,Value Creation
companyname: Voertuig Innovatie Techniek Nederland B.V.
link: www.vitnl.com

Situation

Rarely do new innovations in clean tech provide both a cost saving and reduce CO2 emission at an affordable entry investment level. However, this is exactly what is required in the current market environment to create widespread adoption. Newly build cars & trucks in the "greenest" categories use a start-stop system to reduce fuel consumption and reduce CO2 emission. Voertuig Innovatie Techniek Nederland B.V. ("VITNL") has developed a proprietary, IP protected and validated start-stop system that can be implemented retro-fit into existing cars, or newly build vehicles that do not have a start-stop system. The investment is very limited and can be recouped in a short time span. Fuel saving amount to 7%.

Task

Road to Value is retained by the owner of VITNL to develop a funding strategy, prepare materials (including information memorandum, capitalisation table, potential deal structure), attract an investor base, and negotiate and close a transaction that will enable VITNL to roll out its Smart Save Box and related in-car telematics platform in selected markets on a world wide basis.

Action

- Strategy development
- Material preparation
- Deal structuring

Result

Project pending


]]> Tue, 21 Feb 2012 15:13:15 +0100 projectcycle: March 2011 - June 2011
roadmap: Idea Validation
link: www.ecn.nl

Situation

The value of a patent is based on the ability to defend a potential strong position in the marketplace. Without any evidence on that position and the attractiveness of the existing market, thorough valuation of patents is undoable. At an early stage, patents can have value when it can be transferred with know how, enabling the buyer to develop the invention with a protected kick start.

Task

Road to Value was retained by Energieonderzoek Centrum Nederland (ECN) to assess a portfolio of non core patents on the potential for outright sale.

Action

- Quick review on internal and external attractiveness of patents
- Quick review on the potential for a sale process of patents

Result

In a relatively short time frame, ECN was able to make an informed decision on whether to stop, progress or sell its non core patents.]]> Tue, 21 Feb 2012 15:00:21 +0100 projectcycle: June 2010 - November 2010
roadmap: Deal structure,Value creation,Turn around
link: www.dutchlearning.com

Situation

In entrepreneurship, men are separated from boys by their ability to navigate through sudden unexpected turns in the road. In expansion phase, the entrepreneur leans on all stakeholders to stretch itself to a larger and more profitable version of itself. When entering into an acceleration, the strain on the entrepreneur to find additional partners can be overwhelming.

Task

Road to Value was engaged to find new investors for the Dutch Learning Company, and to negotiate a deal structure.

Action

- Identified and approached potential investors
- Prepared pitching process, including site visits and management presentations
- Negotiated Letter of Intent and Shareholder Agreement on behalf of management
- Legal documentation was closed Nov 2010

Result

Dutch Learning Company bridged a liquidity crunch, and received growth capital for launching a range of new e-learning courses. Iedereen EHBO established itself through a thorough media campaign as the leader in the Dutch First Aid Certification market. At a later stage, the strategic views of investors and entrepreneurs were no longer in line. Road to Value found a new investor that bought out the existing investors and offered growth capital to boost the elearning platform of DLC.]]> Sat, 17 Sep 2011 16:14:02 +0200 projectcycle: undisclosed dates
roadmap: Value Creation,Turn Around,Exit
companyname: undisclosed company

Situation

Minority shareholders face themselves in a difficult position when the investment company needs a turnaround. Influence, however is not just based on shareholder agreements, and there is always a mutual dependency that can work in favour of the minority investor. In this particular case, the UK based internet company had such a heavy cost structure that future funding was essential.

Task

Christian Rood as founder of Road to Value was engaged by the investor to act as investment manager, help merge the company with a related cash generating company, invest another round, accompany management as a non-executive board member, and seek an exit.

Action

- Monitoring of financial performance
- Acting as non executive board member
- Negotiation on - and closing of simultaneous merger and equity injection with other shareholders and management team
- Closing a sale of the investor's stake to a media venture capitalist

Result

The company merged successfully, cash generation improved, management focused on profitable growth, and an exit for our minority stake was realised, generating double digit returns for the investor.


]]> Sat, 17 Sep 2011 16:00:00 +0200 projectcycle: undisclosed dates
roadmap: Idea validation,Deal structure,Turn around
companyname: undisclosed company name

Situation

Kick-starting an internet 2.0 business requires a lot of media attention, well tested technology and seamless execution. Such a business model consumes a high cash burn up front, and is very vulnerable when momentum is lost and page visits need to grow organically from scratch. Prospects change quickly from high promise to luring bankruptcy, and a new dynamic is created between investors and management.

Task

Christian Rood as founder of Road to Value was engaged by the investor to protect the investment after having closed the first investment four months before.

Action

- Analysis of future potential
- Negotiations on Company Voluntary Agreement and new shareholders agreement with other shareholders and founder (UK insolvency procedure)

Result

The company slashed its cash burn significantly, changed its business model from content rich community to media production with potential upside left by hosting proprietary content on the community site in the future. The company is generating profit.]]> Sat, 17 Sep 2011 15:59:45 +0200 projectcycle: March 2009 - June 2009
roadmap: Exit
companyname: undisclosed company name

Situation

The credit crisis has undermined the financial performance of many companies, especially in the construction related industry. This particular company has its own IP protected production technology, offering durable construction material. Its client base includes architects, construction companies, real estate developers and public authorities. The pressure from financials and dim prospects, due to the credit crisis triggered the investor to look for an exit by means of trade sale.

Task

The majority shareholder engaged Road to Value to initiate a sale of the company. Road to Value structured this in a two-phased approach, assessing overall options for the shareholder and feasibility of a sale before entering into a non-reversible process.

Action

- Analysis of existing business, management team, prospects and key clients
- Development of financial model (operational profit & loss projections, valuation)
- Discussing alternatives to a trade sale process

Result

We concluded that a sale was not a realistic option and that a joint venture with a partner would provide the most potential. The shareholder has decided to postpone a strategic decision. In the meantime the operational performance has improved and the industry outlook has become brighter.]]> Sat, 17 Sep 2011 15:54:28 +0200 projectcycle: January 2008 - December 2008
roadmap: Value creation
companyname: CitizenM
link: www.citizenm.com

Situation

Arranging bank financing for most start up companies is nearly impossible, with the exception of certain stimulus loans or mezzanine loans. In this particular case, CitizenM is a new entrant to the hotel business, with a totally new modular building system, a fresh customer proposition and a new brand.

Task

While working for KRC Capital BV, a private equity fund focused on leisure, real estate and fashion segments, Christian Rood as founder of Road to Value was engaged to help arrange bank financing for new CitizenM hotels in Great Britain. Although financing was in place for the first two hotels to be developed at Schiphol and in Amsterdam, there was no hotel in place yet. With the credit crisis starting early 2008, the challenge was to arrange debt financing from new banks for hotels in Great Britain, specifically for Glasgow as the first location.

Action

- Developed bank case based on existing information memorandum
- Discussed terms sheet with a range of international banks
- Negotiated terms sheet for Glasgow location and template terms sheet for new locations with leading UK bank
- Closed (structured) finance documentation for Glasgow location

Result

CitizenM Glasgow is expected to open soon. More locations in the UK market are expected to be realised in the mid term.]]> Sat, 17 Sep 2011 15:51:18 +0200 projectcycle: August 2011 - June 2011
roadmap: Idea Validation,Deal Structuring
link: www.ecn.nl

Situation

Technology institutes are working on a vast array of high tech solutions that can enable the transformation to a sustainable energy household. The challenge is not only to develop new products or technologies, but also to develop new markets. In that arena, an entrepreneurial approach is needed. It requires the tech institute to take a validated market view, and to attract commercial partners that can maximise value, both in terms of technology scale up, as well as roll out to all potential PMC's.

Task

Road to Value was engaged by ECN to commercialise its torrefaction technology. Torrefaction is a pre treatment of biomass, enabling among other the co firing of biomass in coal power plants. It enables a drastic reduction of the CO2 emission of a coal power plant.

Action

- Development of market view and strategy
- Competitive selection process of four potential partners
- Licensing and R&D deal structuring
- Negotiations on cooperation agreement
- Negotiations with sponsoring energy companies

Result

ECN and Andritz AG signed their cooperation agreement on June 30, 2011, and announced the construction of a demo torrefaction plant in Denmark in 2011.
]]> Sat, 17 Sep 2011 15:37:26 +0200 projectcycle: January 2011 - Current
roadmap: Idea Validation,Deal Structuring
link: www.ecn.nl

Situation

Disruptive technology provides a platform of opportunities. Inventors see the potential in a diverging range of applications. The challenge in commercialising the technology is to focus on the most attractive and earliest market, while keeping open the options of other PMC's. This requires an iterative process of strategy development, validation, IP structuring, and partner selection in various potential markets.

Task

Road to Value is retained by Energieonderzoek Centrum Nederland (ECN) to commercialise its Milena biomass gasification technology in a number of potential markets, including Green Gas.

Action

- Strategy development
- Market validation
- Deal structuring

Result

Project pending



]]> Sat, 17 Sep 2011 15:18:10 +0200 projectcycle: April 2006 - December 2008
roadmap: Ideal validation,Deal structure,Value creation
companyname: The CoffeeCompany
link: www.coffeecompany.nl

Situation

The growth of a venture is never linear, not even when a company has captured the zeitgeist as well as the CoffeeCompany has. The drive of entrepreneurs resulted in the company becoming a successful chain of stores in Amsterdam, but rapid expansion required a fresh look at strategy, funding and infrastructure for growth.

Task

While working for KRC Capital BV, a private equity fund focused on leisure, real estate and fashion segments, Christian Rood as founder of Road to Value was engaged as the investment manager for the CoffeeCompany to initiate, invest into, and accompany a new aggressive growth phase

Action

- Assessed the potential of rapid new store expansion
- Devised and negotiated a new deal structure with detailed milestones between management and shareholders
- Arranged a new bank facility for new store expansion
- Accompanied management in strategy execution

Result

The CoffeeCompany established itself after a three year rapid growth period as the clear leader of the Dutch specialty coffee retail market. The company more than doubled its presence of own outlets, and established successful stores in Utrecht, the Hague, Rotterdam, Groningen, Delft, and more in Amsterdam.]]> Sat, 17 Sep 2011 15:01:04 +0200 projectcycle: April 2006 - December 2008
roadmap: Idea Validation,Deal Structure,Value Creation
link: www.officespaces.nl

Situation

There is an emerging need for more creative office space to cater for smaller innovative enterprises, and also to provide a more welcoming environment to professionals who see a blurring boundary between home and work. There is however a contrast with the existing practises in the real estate office market, where real estate owners are relatively conservative and primarily interested in bulk & long term rental contracts. The challenge at hand was to redevelop a 6.000 m2 property at the Herengracht in Amsterdam as a multi tenant office building and establish a pilot business model that can be expanded into a chain based on a clear offering and the appealing brand called "Spaces".

Task

While working for KRC Capital BV, a private equity fund focused on leisure, real estate and fashion segments, Christian Rood as founder of Road to Value was engaged as a member of the entrepreneur team and worked to realise the venture from a financial and legal perspective.

Action

- Operationalization of business plan and designs
- Developed financial model (construction budget, operational profit & loss projections, propco / opco allocation, liquidity overview, valuation)
- Contracting with local government (permits), existing tenant, construction companies, key suppliers, new tenants, bank
- Financial administration

Result

The opening of award winning multitenant building Spaces at Herengracht in Amsterdam in 2008. Spaces Herengracht operates very well in all areas (offices, independent worker places, meeting rooms, food & beverage, events). New Spaces locations include Amsterdam Zuid-as, Rotterdam (2012) and the Hague (2012).

]]> Sat, 17 Sep 2011 14:50:44 +0200 Fri, 09 Sep 2011 09:16:13 +0200
- Sale process project management (valuation, sale process, negotiations with buyer).]]> Mon, 12 Oct 2009 10:01:32 +0200
- Restructuring and renegotiating the agreement between the management team and investors.]]> Mon, 12 Oct 2009 10:01:07 +0200
- Acting as a bridge between investors and management team to make the co-operation work on a daily basis.]]> Mon, 12 Oct 2009 10:00:38 +0200
- Raising equity and related capital.
]]> Mon, 12 Oct 2009 10:00:08 +0200
- Creating an information package and training management teams to attract the interest of investors.

]]> Mon, 12 Oct 2009 09:59:32 +0200
The ability of a company to earn future cash flow (shareholder value) is the best way to measure the value of a company, if all stakeholders are committed to the company in a sustainable way. We help to identify, enable and realize shareholder value in all stages of the company lifecycle.]]> Fri, 25 Sep 2009 16:10:39 +0200
Toolbox aspects include:

- Market model, Valuation & IRR model
- Capitalisation table
- Information Memorandum
- Business Plan
- Investment Appraisal
- Sales & Purchase Agreement
- Shareholder agreement
- Cash based planning
- Management Retention Package

Road to Value realizes that value creation is never an analytical exercise only, but that the actual behavior of both manager and investor is key to delivery.
]]> Fri, 25 Sep 2009 16:08:14 +0200
1. Idea validation
2. Deal structuring
3. Value creation
4. (Turn around)
5. Exit
For more details see roadmap]]> Fri, 25 Sep 2009 14:10:00 +0200 Fri, 18 Sep 2009 06:42:23 +0200 Fri, 18 Sep 2009 04:42:10 +0200 Fri, 18 Sep 2009 04:38:34 +0200