Client Name

1st March 2012

Joe Smith

www.scaale.com

Who are we?

Scaale  is a venture resource group of companies. Scaale applies global context to every company through sales, capital and talent. 

Who are we?

Scaale  is a venture resource group of companies. Scaale applies global context to every company through sales, capital and talent. 

Global Talent

Global Sales

Global Capital

Who are we?

200 plus professionals 

Our differentiators:  Embedded in the Silicon Valley ecosystem and high tech community. Special Focus on Emerging Markets. Unique approach “City State” Marketing. Comprehensive Global Growth Model.

30 Years of Experience in numerous industries and countries Execution of IPO’s. Execution of M&A. Local and international Fund raising. IP management. International team building and engagements.

Scaale Capital: raising global capital (second rounds and beyond), global exits, business advisory and IPO. 

Who are we?

1. Registered advisor authorized by MAB2. Managed some of the principal market deals  in the European stock exchange.

(9,000 plus MM  €)3. One of leaders of MAB deals (20% of the MAB operations).4. Management includes some of the most reputable analysts in Spain. 5. Network of some of the biggest family offices and institutional investors in Europe. 

Forum Discussion

Current situation in US: IPO: 9.5 years Exits: 7 years

2 important factors: Traction Exit

Can Alternative Investment Markets provide better traction?

Can they provide a better exit?

Spain as a gateway between Europe and Latin America

Spain as a gateway between Europe and Latin America

Spain as a gateway between Europe and Latin America

SIZE OF THE MARKET

• Population in Spain: 47,190,493 (2011)

• Population in LATAM: 423 Milions (2011) – 20 countries.

• US Spanish speakers: 37 Milion

Spain as a gateway between Europe and Latin America

ENTREPRENEURSHIP• One of the countries in Europe that is investing the most in 

entrepreneurship initiatives.• 1st country in the world in innovation facilities: 81 

innovation, scientific and technological parks.  

Industries and size (big players): • Renewals energy (12% of the total energy generation and 

the 3th largest producer of wind in the world.)• 4th largest manufacture in the world of solar technology 

power. • Top 10 in research• Construction, Banking, Telecom, Healthcare.• The biggest LATAM companies are listed in Spain.

Spain as a gateway between Europe and Latin America

INVESTMENT

• Business Angels: 1,400 plus• BA networks: 43• Funds, families offices, VCs: 350 

plus VCs• Angel Investment: 2007 (122 

deals – 25MM€) / 2008 (48 deals – 13 MM€) (Angels invest between 50,000 – 250,000 €.

• Number of IPO: Spain 53 in 2011 / London 51 2011 / HK 63 2011

Alternative Investment Markets as a financial and marketing tool. The Spanish MAB as the most efficient way

They are stock exchanges with requirements adjusted to the characteristics of the small and medium companies.

Total Size:

4,814 companies $250 Bn

1995 2005 2008

Alternative Investment Markets as a financial and marketing tool. The Spanish MAB as the most efficient way

Why AIM?

1.- Visibility2.- Recurrent funding3.- Use the stocks as money4.- Objective valuation5.- Much bigger scope of investors6.- Brand Trust

Alternatives Investment Markets as a financial and marketing tool. The Spanish MAB as the most efficient way

Why MAB could be the most efficient way?

1.- More visibility as it is a smaller market / less crowded. 2.- Clean regulatory track record, internationally recognized. More conservative. 3.- Better platform for internationalization for emerging markets (LATAM)4.- Cost effective5.- Spanish investors are willing to diversify

Could my company be listed at MAB?

1.- Tailor-made for high growth potential companies, SMEs.2.- All innovative industries.3.- Strong story and team. 4.- Could be a good play for companies that strategically are interested in Spain or LATAM markets (not a condition)5.- Companies interested in accelerating their growth:

1.- Recurrent funding2.- Emission of debt3.- Exit

Pros and Conts - PROS

1. You have all the benefits of being quoted2. Market adequate to SME with high growth potential3. Proven investor interest: many IPO´s despite the closure of other financial places and markets

4. Higher interest from the investors towards companies from other worldwide companies

5. Cost effective: other AIM, BA, Venture Capital, traditional banking financing…

6. Best platform simultaneously toward Europe and Latam7. Best first listing step towards other markets available during the following steps of the company

Pros and Cons - PROS

8. Historical strength of the Spanish Stock Market since 18319. Biggest companies growing from Spanish exchanges: Telefonica, Inditex, Santander, BBVA, etc. 

10. Successful track record in MAB from listed companies.11. Possibility of increasing listing value by 2x or more in one or several deals, easier to reach a successful outcome.

12. Non monetary acquisitions available13. Recurrent financing resource for the company.14. Highest visibility and marketing versus other.15. The largest scope of investors.

Pros and Cons - CONS

• If the company is small, it may suffer from a lack of liquidity. The MAB  provides  easy  exit mechanisms  for  investors,  but it’s not as liquid as the major markets. However, the liquidity provider helps efficiently unwind positions.

• The  MAB  has  a  commitment  to  the  expansion  plan  of companies,  so  it  is  not  a market  for  speculation,  but  has  a long-term focus.

• An  IPO  involves  a  dilution  of  the  participation  of  major shareholders in the company.

Pros and Conts - CONTS

• The rating of the market is not always in accordance with the company’s expectations. The Market may rate the company depending on parameters of the sector or other hypotheses. 

• Obligations listed on the MAB involves total transparency for certain  company  information.  Transparency  requirements also extends to a company’s partners.

Process and Costs

The market conditions may impact the timing of the operation

DECISION REQUESTPROCESSING

AND INCLUSION

LISTING

• By laws (social agreements).

• Appoint a nominated advisor.

• Review the current situation of the company

• Design the transaction.

• Documentation proving compliance with the requirements of incorporation.

• Prepare and assess the business plan (preparing DIM or brochure).

• Inclusion request studied by MAB and inclusion agreement.

• MAB communicates inclusion to the company.

• Publication of the listing in the Daily Bulletin.

• SIBE code assigned.

• Book entry in the incorporation register.

Incorportation Process 2 - 4 months Between 1 - 2 months Between 1 - 2 month

Transformation into S.A. (inc.) 1,5 months

Success stories

Q&A

Twitter#MABevent

Managing from the US

1. Strategic Analysis: Does it makes sense for your company? Can your company be listed? How are we going to leverage MAB?2. Information, evaluation of the company, Due Diligence from US and coordinated with DCM, registered advisor in Spain and with the exhange. All the process can be done from USA.  (all the signatures, media coverage, and others can be done in remote). • When do you need to travel? road show / investor meetings with 

underwritters. An agenda will be prepared. 4. Scaale as a point of contact and information 5. Report to the market: • financial statments twice a year (audited by the end of the year). • Any relevant information that could have any impact on the business. (the 

registered advisor is the one that determined what is relevant)• Investor relations• Communication related with the listed life.