Zimmerman Adams International

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Zimmerman Adams International
Strategic Investment IPO (on AIM) Dual Track
Preparation
19 October 2009
ZAI Group of Companies Registered in England and
Wales No. 06814163 Registered Office 12 Camomile
Street, London EC3A 7PT Authorised and Regulated
by the Financial Services Authority Member of
the London stock exchange
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Table of Contents

• A good time for the beverage sector companies
• Sector trends
• Case studies from the sector
• AIM market
• 9 months 2009
  fundraising statistic
• Comparison with other
  Small Cap exchanges
• Strategic investments via
• Private Equity and VC
  Market
• MA transactions
• PE vs. IPO (on AIM)
• Seven Solutions approach

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UK Markets 12 month change
Source Investors chronicles, http//www.investors
chronicle.co.uk AIM and Main
markets performance in 1H 2009 by sectors
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UK Markets 3 month change
Source Investors chronicles, http//www.investors
chronicle.co.uk AIM and Main
markets performance in 1H 2009 by sectors
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UK Markets 1 month change
Source Investors chronicles, http//www.investors
chronicle.co.uk AIM and Main
markets performance in 1H2009 by sectors
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Beverage sector case studies
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AIM market statistics for 9 months 2009
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Small Cap Markets Capital raised
Source World Federation of Exchanges (WFE),
www.world-exchanges.org/statistics
In 2008, a poor year, AIM raised more than 3
times the funds raised on all these other markets
combined
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Liquidity Total value of trading
Source World Federation of Exchanges (WFE),
www.worldexchanges.org/statistics
AIM is often criticised for lack of liquidity,
but this criticism isnt always supported by the
facts
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Small Cap Markets Market Indexes
Source World Federation of Exchanges (WFE),
www.world-exchanges.org/statistics
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2 obvious solutions PE vs IPO (on AIM)
Choice of the route depends on companys
management objectives strategy, the investor
base it wants to target and time pressure
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The European Private Equity and VC Market Funds
Raised
Source European Private Equity and Venture
Capital Association
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The Problem with the Traditional Approach

• In addition to the sheer size of capital markets,
  they are very complex
• Single service providers dominate the market
• The traditional approach is Rothschild only do
  MA, Teather Greenwood only do IPOs, 3i only
  does private equity, etc. etc. As such, various
  clients often find themselves bombarded by many
  different solutions from various sources.
  However, many are poorly equipped to properly
  compare and interpret them
• Clients also get very little help in
  understanding the differences between the various
  solutions (which are significant and complex)
  from the traditional providers, as it is only in
  their interest to sell their own services

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ZAI Seven Solutions approach
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Methodology What We Do (cont.)
Industrial EquityMA Trade Sale
Quoted MarketsIPO/SPO
Family, Friends,Angel Investors
ZAI client
Convertible Debt Providers
Employees and their pension funds
PEMinorityInvestors
PEMajorityInvestors
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How To Choose?

• How to choose between the various solutions?
• Start with clear objectives and criteria
• Adopt a clear methodology
• Take a systematic approach to analysing each
  option
• Avoid Opportunism at all costs
• Beware of Deal fever
• Plan for and devote sufficient time and effort
  and human resources to the task
• In short do a professional job of it!
• One is constantly amazed at how many businesses
  do not take this approach, when all admit that
  such events are always amongst the most important
  in the life of a business

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Conclusion

• In much the same way as our Bulge Bracket
  brethren do for the FTSE 100 clients, ZAI have
  created a service which allows a client
• To thoroughly consider all of their financing and
  investment banking options, before deciding how
  to proceed
• To chose between and amongst the various options
  on the basis of objective criteria
• As opposed to solutions provided by Management
  Consultants, to work on the basis of applied
  strategy, i.e. real options with real investors
• The ability to execute each of the solutions.
• All from the same firm, at the same time, within
  the same service and (not coincidentally)
• All for the same price
• This is a unique solution which delivers superior
  results

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Contact Details
Thank you! Website
www.zaicf.com