These companies should be able to offer investors an attractive investment proposition to participate in potential future value creation. BME Growth offers companies a continuous financing channel (at the equity level) to finance their growth plans; facilitates the use of shares as an alternative form of payment to acquire other companies; reinforces its prestige and brand image in front of third parties (customers, employees, suppliers, banks,…); allows structuring an alternative remuneration plan with shares for employees, with the aim of retaining and attracting talent.
BME Growth currently lists 54 companies (excluding SOCIMIs) with an average capitalization of approximately €100 million. Of these 54, 12 have a capitalization in the range of €20 to 50 million (a minimum valuation suitable to join the market). Currently, very attractive companies are listed with a great track record and potential that have the support of top-level institutional investors, and we trust that in the coming years we will see more companies joining.
In Europe there are more consolidated alternative markets, which are not the natural alternative for Spanish companies, among which the English AIM (segment of the London Stock Exchange) stands out. It is a mature market, it began in 1995, in which 709 companies are already listed with an approximate average capitalization of €85 million. Likewise, Euronext has a Growth segment (on the Brussels, Dublin, Lisbon, Milan, Oslo and Paris stock exchanges) in which 588 companies are listed with an approximate average capitalization of €90 million.
Exiting to BME Growth is a process that requires partial involvement on the part of the companies’ management team and the financial department, which must be compatible with their day-to-day life, for a period of approximately 5 months.
It is worth keeping in mind that when becoming a public company, the levels of demand and professionalization (financial reporting, corporate governance, internal control procedures,…) are higher.
The execution of the exit process requires the hiring of a Registered Advisor, responsible for assessing the suitability of the company, leading the process by coordinating the work of the rest of the advisors and advising on compliance with the incorporation requirements and on the preparation of information. financial and business required. This requirement is similar to that of the Continuous Market, where it is advisable to hire a Financial Advisor to evaluate the company’s situation for exit, support it in the preparation and structuring phase, as well as in the subsequent execution of the process.
BME Growth can compare favorably with another financing alternative such as the entry of a venture capital fund into the shareholding (a mechanism that has been very successful in the last 20 years). Below we highlight the two main differences to take into consideration: i) at the management level: an exit to BME Growth allows the shareholders to continue leading the project by minimizing the dilutive effect and not involving new investors in the management, while a fund venture capital generally involves a transfer of control and significant dilution of current shareholders; and ii) at the level of disinvestment term: BME Growth allows shareholders to absorb the creation of value in the market in the medium/long term, while the entry of a venture capital fund entails a high initial disinvestment, establishing an end date. total sale at the time of disinvestment from the fund, so value creation is short/medium term.
In short, BME Growth is something much closer to SMEs than is believed, being an ideal alternative for entrepreneurs who want to continue leading their project, helping them grow, as well as achieve their objectives, including internationalization, sharing the creation of future value with new investors, through an accessible and simple process accompanied by the right advisors. Companies that dare to take the leap must keep in mind the need to establish a win-win relationship with investors over time.
The consolidation process of the BME Growth market, in any case, will be greatly influenced by the resonance of success stories such as those of, among others, Masmóvil Ibercom, Grenergy Renovables, Proeduca, Altia…