FrontOffice Nordic AB (publ.)
FrontOffice Nordic AB (publ) was founded as a response to how reconstructions traditionally were handled by law firms. The process was often unnecessarily expensive and failed to address the core of the problem – why and how the financial problems arose in the first place. FrontOffice found that legal advice alone would not be sufficient to solve problems, which to a large extent are financial or managerial in nature. A combination of skills and experience in entrepreneurship, finance, law, marketing, and sales are often required to successfully turn around a company in financial distress.
In the past three years alone more than 85 of FrontOffice’s approximately 130 reconstructions have been successful. This has helped save over 1 000 jobs. Our success rate is significantly higher than that of any of our competitors; 65 percent of our reconstructions are successful compared to the industry standard of 18 percent (according to UC, 2013-06-10).
We are growing fast. In three years, the staff at FrontOffice has grown from two to 14. Of the current staff, eleven are full time employees and three are consultants. The majority of our staff have a background as entrepreneurs and/or are experienced in insolvency law. Our aim is to become the leading turnaround consultancy in the Nordics.
Every year about 6 500 companies in Sweden file for bankruptcy. This amounts to about 15 000 lost jobs. A significant share of these companies could be saved from bankruptcy through a reconstruction. Our research indicates that 20 000 companies a year potentially could benefit from a reconstruction.
FrontOffice is the parent company in a corporate group specialized in turnarounds. Svensk Företagsrekonstruktion AB is the turnaround consultancy.
FrontOffice has developed a technical platform to identify potential clients at an early stage. This platform is called KROSS. Identification often occurs before the companies themselves realize the severity of their situation.
FrontOffice’s ability to reach out to potential clients before it is too late is a key factor in both our strong ability to acquire clients and our high success rate (65 % compared to industry standard of 18 %).
FrontOffice’s competitors are mostly law firms. Law firms lack the ability to advertise freely which has opened up a significant market opportunity for us.
FrontOffice is proud to have Rolf Åbjörnsson, renowned insolvency attorney, as a member of its board of directors. Mr Åbjörnsson has been a partner and co-founder of several large law firms and has acted as a trustee in some of Sweden’s largest bankruptcies.
FrontOffice will use the proceeds from the share issue to continue development of KROSS, recruit personnel and to market its services, enabling even faster growth.
Expected profit of 1 MSEK 2015, and 3 – 4 MSEK 2016.
FrontOffice will launch an independently operated investment fund. The fund will invest in companies which show significant potential for growth and profitability.
- Subscription price: SEK 2.50 per share
- Subscription period: November 25 2015 – 15 January 2016
- Amount offered B shares: 2 000 000
- Capital raised: 5.0 MSEK
- Valuation, pre money: 27.5 MSEK
Investors receiving allocation of shares, without preferential rights, will be given notification through an allocation statement. Payment must be made within three (3) business days after the allocation statement has been received.
The information and the terms for the rights issue, as set forth in the memorandum, should be the basis for your assessment to invest in FrontOffice. The information provided through this text on FundedByMe is not part of the memorandum. The memorandum has been uploaded and is available for download on FundedByMe. In order to gain access to the memorandum and to participate in this investment, we kindly ask you to sign in or become a member of FundedByMe.
PURPOSE OF THE ISSUE – IPO Q1 2016
The board of directors has the ambition to list the company’s shares for trading during the first quarter of 2016. FrontOffice launches this financing round through FundedByMe in order to ensure the following:
Economic strength – FrontOffice forecasts indicate a profit of over 1 Mkr for 2015 and 3-4 Mkr for 2016. We continuously invest in growth. With greater financial muscle, we can increase the growth rate substantially.
Diversification of ownership – a well diversified ownership is a prerequisite in order for the trading in the company’s shares to be liquid. To allow for a greater diversification of ownership, current major shareholders have decided to waive their preferential rights. However, the major shareholders have undertaken to subscribe for shares not subscribed for by the general public.