Investment Banking

The investment banking team at Arbel Capital focuses on identifying, financing and advising Israel’s most promising emerging growth companies as they expand and develop their business. As a trusted source for merger and acquisition advice, capital raising and restructuring solutions, Arbel offers its clients tailored strategies to help sustain and grow their business.

By focusing exclusively on emerging growth technology based companies, Arbel Capital has developed a deep understanding of this category of companies, their managerial challenges and their highly specialized financing needs. Arbel Capital’s success stems from its ability to tailor unique financial solutions and execute complex transactions, creating long-term shareholder value.

Arbel Capital's investment banking services involve structuring, marketing and the execution of financial transactions in the public and private markets, including:

• Private placements of equity and debt securities
• Initial and secondary public offerings
• Reverse mergers
• Public and private mergers and acquisitions
• PIPEs (Private Investments in Public Equities)

Private Placements

Private placements solutions are structured and executed for companies seeking non-public sources of capital. Combining debt and equity issues, equity lines of credit and other equity-linked securities, capital is sourced through Arbel’s strategic partners and wide network of institutional and private investors.
Arbel’s private placement team supports clients throughout their business life cycle:  

• Conducting valuation analysis and validation
• Working with Arbel clients to prepare an executive summary, memorandum, presentations and other marketing materials necessary for the transaction
• Advising our clients as to the size of an offering, and its structure
• Identifying, contacting and facilitating meetings with prospective investors to discuss an investment in the company
• Continuing in an advisory role with respect to financing and future liquidity needs

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IPOs and Secondary Public Offerings

Arbel Capital brings its clients an established track record in financial transactions and an extensive knowledge of the capital markets. Arbel’s international experience ranges from primary to smaller, secondary stock market listings. Arbel’s offering is based on a seasoned team and a group of strategic partners, both with deep industry know-how. Together, they enable Arbel to identify, structure, and execute the best financing solution to support the long term strategic objectives of its clients.

Becoming a public entity has a number of clear advantages such as, increased liquidity of a company’s shares and its ability to acquire other companies using its stock. However, this is a complex and sensitive process. Arbel’s investment banking team and partners assist clients with selecting the best suited stock market as well as making the right timing and structure choices, thereby simplifying the process.

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Reverse Mergers

Arbel Capital offers its clients an alternative mechanism to Initial Public Offering (IPO) by merging with an existing public company.

In a typical reverse merger transaction, an operating company that seeks to become a public company is merged into a public shell and the business of the operating company continues unaffected. The private company merges into a public entity, and obtains the majority of its stock.

The benefits of going public through a reverse merger, as opposed to an IPO, are the following:

• Reverse merger provides immediate access to large shareholders base, and in many cases, to remaining funds.
• IPOs, unlike reverse mergers, may be withdrawn or postponed due to an unfavorable market condition at any stage.
• While an IPO requires a relatively long and stable earning history, the lack of an earning history does not commonly keep a privately-held company from completing a reverse merger

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Public and Private Mergers & Acquisitions

Arbel Capital’s strong footing in the Israeli technology sector, positions it as an ideal solution for companies seeking to maximize their potential through mergers and acquisitions. The team has substantial experience in providing M&A expertise to a wide range of companies and industries. Arbel's M&A specialists and partners have experience advising on major M&A transactions and bring this special expertise to emerging growth companies. In addition, the team has the ability to raise capital through the public or private markets (debt or equity) in order to finance acquisition opportunities, thereby providing clients with a complete solution to their M&A needs.

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Private Investments in Public Equity (PIPEs)

For publicly traded companies seeking private capital to finance their growth path or bridge themselves to profitability, Arbel Capital facilitates privately negotiated forms of financing as Private Investment in Public Equity (PIPEs), in which publicly traded companies access new capital through the issuing of stock directly to a select group of private investors.

Private Investments in Public Equity (PIPEs) involve the privately negotiated sale of unregistered securities by a public company to a select group of institutional and/or accredited investors. There are several forms of PIPEs, with the most common being the issuance of convertible securities, such as convertible debt, convertible preferred shares, or common shares, at a fixed conversion ratio or at a specified discount to the current market price.

The PIPE market reached $27 billion in 2006 and grew to $20 billion in the first half of 2007. PIPEs are typically faster and more cost-effective than registered secondary offerings and represent a growing financing solution to companies.

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