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Products & Services

INVESTMENT BANKING

Investment Banking


12 Capital Group offers quality advisory and investment banking services for middle market and emerging growth companies.  Our expertise spans many industries including technology, biotech, retail, consumer products, healthcare, real estate and business services.

12 Capital Group understands the obstacles companies face when building their businesses.  Customized services are required to solve complex business issues and with proper understanding of each company's unique objectives, we structure capitalization solutions.

Combining our extensive investment banking capabilities, strategic partnerships and commitment to client service, we provide value to our clients from the initial transaction throughout the business cycle.

Recent Transactions

Initial Public Offerings


Initial Public Offerings (IPOs) are new issue securities that are being brought to the market by an underwriter and a selling group. These new issues can be equity, debt or preferred stocks and often trade on the NYSE, AMEX or NASDAQ in the aftermarket. 12 Capital Group participates in equity and debt (both corporate and municipal) new issues and can discuss current new issues based on availability and your suitability.

Private Placements


Private placements are the sale of securities to a relatively small number of select investors as a means of raising capital. Investors involved in private placements are usually large banks, mutual funds, insurance companies and pension funds. Unlike a public issue, these securities are not made available for sale on the open market.

Mergers and Acquisitions


12 Capital Group offers a full range of merger and acquisition services. Our expertise includes valuating, structuring, negotiating and financing a variety of business types. We also act as an advisor in the buying and selling of both public and private businesses and in the implementation of joint ventures. Our team aggressively identifies buyers and sellers, crafting strategic introductions for the benefit of all participants.

Bridge Financing


Bridge loans offer a method of financing companies before their IPO, in order to obtain necessary cash for the maintenance of operations. Bridge financing is designed to cover expenses associated with the IPO and is typically short-term in nature. Once the IPO is complete, the cash raised from the offering will immediately payoff the loan liability.

Private Investment in Public Equity (PIPE)


A private investment firm’s, mutual fund’s or other qualified investors’ purchase of stock in a company at a discount to the current market value per share for the purpose of raising capital. There are two main types of PIPEs – traditional and structured. A traditional PIPE is one in which stock, either common or preferred, is issued at a set price to raise capital for the issuer. A structured PIPE, on the other hand, issues convertible debt (common or preferred shares). PIPEs provide for small- to medium-sized public companies, which have a hard time accessing more traditional forms of equity financing.

Private Equity


12 Capital Group is a provider of private equity to the investing public. The private sector is a significant source of potential venture capital. By making private equity deals available to accredited investors, and not simply a limited community of hedge funds, institutions and banks, our clients have access to some of the most lucrative sectors in the market.

Mezzanine Financing


Mezzanine financing involves a hybrid of debt and equity financing typically used to finance the expansion of existing companies. Mezzanine financing is essentially debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is advantageous because it is treated like equity on a company’s balance sheet and may make it easier to obtain standard bank financing.

Debt Restructuring


Debt restructuring enables companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Companies use debt restructuring to avoid default on existing debt or to take advantage of a lower interest rate.

Valuation


Valuation determines the current worth of an asset or company. There are many subjective and objective measures that can be used to determine value. Some factors considered include the company’s management, the composition of its capital structure, prospect of future earnings, and market value of assets.

Follow-On Offerings


An issue of shares of stock that comes after a company has already issued an initial public offering (IPO). A follow-on offering can be diluted, meaning that the new shares will lower a company’s earnings per share (EPS), or undiluted, if the additional shares are preferred. Unlike an IPO, which includes a price range that the company is looking to sell shares at, the price of a follow-on offering is market-driven.