Corporate Finance and Investment Banking Services
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Avalon Capital is a corporate finance advisory firm providing investment banking services and ...
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The Effective Bridge Between Israeli Technology Companies and International Financial Markets
Avalon Capital is a corporate finance advisory firm providing investment banking services to Israeli technology companies. We specialize in serving middle-market and emerging growth companies that seek financing from US and European capital and equity markets.
Cross-border Expertise
Our corporate finance advisory services enable Israeli companies and their shareholders to maximize their return on investment and free management from the time-consuming details of capital raising in order to concentrate on running the business.
As a leading advisor to Israeli companies that wish to tap into international capital markets, we leverage our familiarity with the Israeli venture capital community and foreign investors in order to provide a wide range of cross-border advisory services. These include Mergers & Acquisitions, PIPEs, the placement of private equity and debt, and Initial Public Offerings.
We have closed numerous deals with high growth companies by accessing investors from both sides of the Atlantic. With headquarters in Israel and an office in London, we have a deep knowledge of worldwide capital markets and excellent access to sources of capital.
Avalon is a leading advisor to Israeli companies seeking to list in London. Between 2005-2008, the number of Israeli companies that are publicly listed in London had grown significantly. Working together with our London-based team, we draw upon our deep understanding of the intricacies of a successful cross-border transaction
Avalon is the first corporate finance advisory firm to facilitate Israeli IPOs on both London's AIM and NASDAQ. We have also designed and structured an IPO on London's AIM, whereby a majority of shares were sold to US investors via Rule 144A.
USA Initiative
Avalon cooperates with several US investment banks for select domain specialty sectors and identifies target opportunities in Israel's high tech market for collaboration and acquisition. Our strong affiliation with US banks has been a key asset in facilitating transactions. We provide management and shareholders with a strong level of comfort in working with a US banking entity that had previously been unfamiliar to Israeli companies or the local market.
Growth via Acquisitions
Avalon has been actively representing publicly listed US and European companies in their quest for growth via M&A of Israel high tech stars. The compelling story is the attractiveness that stems from innovation, strong R&D, first mover advantage, good management, and entrants into new markets. The target companies are generally venture backed, geographically concentrated, and often commercialize military technology with the assistance of high caliber immigrants from the former Soviet Union.
Sometimes such acquisitions commence from an initial equity investment and/or commercial relationships (licensing, distribution, manufacturing, joint-venture, etc). Avalon's experience and understanding of the market segment with a good relationship with shareholders greatly enhances the chances of successful cross border transaction.
Maximizing the UK Opportunity
Solid Foundation
Avalon Capital was founded in 2004 and is headquartered in Israel, with an office in London. The firm is managed by an international team of experts in investment banking, corporate finance and high-tech markets.
Our Team
Joseph Sabet | Founding Partner
Jonathan Schwartz | Investment Banking, Israel
Olivier Wiesel | Investment Banking, Israel
Stewart Millman | Managing Director, London
Amir Elion | Investment Banking, London
Services
Alliances
Press Releases
02/11/11 - Wells Fargo: Protalix could benefit from drug shortage
19/09/11 - Avalon Capital Advises BrightLED in Series A Financing from Israel Electric Corporation
11/09/11 - Wells Fargo: Proctor & Gamble JV to add $2.1b to Teva's value
13/05/11 - Avalon Capital to Present at 2011 Wells Fargo Securities International M&A Conference
28/04/11 - Avalon Capital Launches New Website
07/02/11 - Bright LED retains Avalon Capital for Corporate Finance Advisory and Private
Placement Services
24/01/11 - MaxTech Networks Appoints Avalon Capital for Corporate Finance Advisory
Sevices
07/01/11 - "Israel is Target Market for Wells Fargo" - Globes Article
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September 11, 2011
“Wells Fargo: Proctor & Gamble JV to add $2.1b to Teva's value
Wells Fargo gives Teva an "Outperform" recommendation.
Wells Fargo Securities estimates that the joint venture with Proctor & Gamble Co. (NYSE: PG) will add $2.1 billion market cap to Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) in 2012. Wells Fargo gives Teva an "Outperform" recommendation.
In March, Teva and Proctor & Gamble announced a joint venture leverage Teva's manufacturing of over the counter medications and Proctor & Gamble's marketing and cross-selling via separate global channels. The agreement is due to be finalized by the end of the year, pending regulatory approvals.
Wells Fargo says that the joint venture should become a market leader thanks to a strong product portfolio, an efficient manufacturing network, deep laboratory and R&D expertise, extensive consumer understanding, and go-to-market expertise. It should allow for accelerated product development through prescription drug to over-the-counter switches and new products for existing brands. It should also realize synergies, primarily through manufacturing and advertising scale.
"We believe the largest opportunity is the sale of existing products in new distribution channels, essentially building new country/channel capability much faster and cheaper than either company could independently. In addition, the joint venture provides each company these opportunities with virtually no incremental capital investment."
Wells Fargo estimates that the joint venture could add $1.10-2.34 per share to Teva's valuation in 2012. At Teva's current share price of $38.50, this amounts to 2.9-6.1% - up to $2.1 billion at the high-end estimate. Teva's market cap has fallen 17% since the end of July to $34.3 billion.
Wells Fargo estimates that the joint venture could add $0.59-1.09 per share to Proctor & Gamble's valuation in 2012. The company has a market cap of $170 billion.
Wells Fargo estimates the over-the-counter drug market at $100 billion, and growing by 5-6% a year. It notes that the two companies expect the joint venture to reach $4 billion in annual sales in the second half of this decade. It estimates the joint venture's revenue at $1.65 billion in 2012, and that it will achieve 15% annual growth to reach $4.4 billion by 2012. It estimates the joint venture's net profit at $329 million in 2012, with 18% annual growth to exceed $1 billion by 2019.
Teva owns 49% of the joint venture and Proctor & Gamble owns 51%.
Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2011
September 19, 2011
Avalon Capital Advises BrightLED in Series A Financing from Israel Electric Corporation
Avalon Capital is pleased to announce that BrightLED, an innovative energy efficienct lighting company, has secured a Strategic Investment in Series A Financing from Israel Electric Corporation's (IEC) Karat Fund. BrightLED is a clean technology company developing high powered and unique LED light engines based on innovative thermal management and optic technology. Avalon Capital acted as the Exclusive Financial Advisor for BrightLED.
"Avalon Capital was a strong partner during this financing and the firm helped management bring the BrightLED story to a broad market of both strategic and financial investors" said Rami Mirsky, BrightLED's CEO. The strategic investment will be used to fund the companys product development, including the development of its robust street lighting solution, and to establish the companys infrastructure as well as its sales and marketing capabilities.
About Bright LED
Bright LED is an innovative provider of advanced High-Brightness (HB) Light Emitting Diode (LED) lighting solutions. The companys products will enable lights to provide higher lumen output via any fixture. Founded in 2009, BrightLED is a subsidiary from MCL Micro Components Ltd. and utilizes unique packaging technology from the semiconductor industry. The Company is headquartered in Haifa, Israel.
About IEC KARAT
Israel Electric Corporation (IEC) has established an internal venture unit, currently named KARAT (the Hebrew acronym for "Accelerating Technological Ideas") which provides a framework of investment and support services to develop, advance, and commercialize innovative ideas in energy-related fields. This initiative follows the growing global need for solutions of "green" (clean) electric energy, lower energy costs, and higher system efficiency, with the objective of decreasing global dependency on carbon fuels.
About Avalon Capital
Avalon Capital is a corporate finance advisory firm specializing in mergers and acquisitions, private capital advisory and public equity market services in both the UK and USA for the technology industry. Avalon is highly regarded in particular technology niches including wireless equipment, medical devices, cleantech, fintech software and information technology. The firm was founded in 2004 with offices in Tel Aviv and London. We apply partner level experience to the successful execution of advisory and financing transactions for emerging tech companies.
May 13, 2011
Avalon Capital to Present at 2011 Wells Fargo Securities International M&A Conference
Avalon Capital will present at the Wells Fargo Securities International M&A Conference 2011 between May 18 - 20 in New York City. In joining senior colleagues from other leading Wells Fargo partner firms from all over the world, each firm will have the opportunity to present a firm overview.
The conference will not only provide a chance for partners to meet one another, but will also provide an opportunity for Avalon Capital to present the robust Israeli market. Avalon has been invited to contribute in the Growth Markets Panel with other firms to discuss recent trends, the outlook for cross-border M&A opportunities in Israel, and key issues to address when executing these deals.
The Wells Fargo Securities International M&A Conference promises to be a highly significant event which will allow attendees to share potential cross-border M&A ideas and also allow Avalon Capital to benefit from updates on industry trends across various sectors in different parts of the world including the U.S.
April 28, 2011
Avalon Capital Launches New Website
In an effort to increase brand exposure, Avalon Capital has launched a newly designed corporate website that better showcases the firms capabilities. The easy to navigate website provides visitors to the site a comprehensive overview of the company, the team, transaction history, and upcoming company press releases.
We are extremely excited about the launch of our new site, comments Joseph Sabet, Founding Partner of Avalon Capital. In addition to providing detailed information, our website will be used as a resource to generate new business, clientele and leverage other business opportunities."
In the past, Avalon Capital was primarily focused on advising Israeli clients on public equity offerings in London. Over the course of the changing market conditions the firm has widened its competencies. Prospective clients are welcomed to learn more about the diverse advisory services Avalon offers. The website also provides simple contact options for visitors to utilize including a submission form for direct email contact.
Avalon Capital welcomes you to learn more by exploring the website.
November 1, 2011
“Wells Fargo: Protalix could benefit from drug shortages
Wells Fargo gives Protalix an "Outperform" recommendation, citing an executive order by US President Barack Obama to address drug shortages
Wells Fargo gives Protalix Biotherapeutics Inc. (AMEX:PLX; TASE: PLX) an "Outperform" recommendation, citing an executive order by US President Barack Obama to address drug shortages. Protalix's treatment for Gaucher's disease, which is under US Food and Drug Administration (FDA) review, is one of the diseases for which there a significant drug shortage. Wells Fargo's expects the share to continue to rise strongly up to and beyond approval of its treatment.
Cerezyme, made by Sanofi Aventis SA (NYSE: SNY; Euronext: SAN) and Genzyme Inc., is the leading treatment for Gaucher's disease on the market.
The executive order states, ''To the extent practicable, and consistent with its statutory responsibility to ensure the safety and effectiveness of the drug supply, the FDA shall take steps to expand its current efforts to expedite its regulatory reviews, including reviews of new drug suppliers, manufacturing sites, and manufacturing changes, whenever it determines that expedited review would help to avoid or mitigate existing or potential drug shortages. In prioritizing and allocating its limited resources, the FDA should consider both the severity of the shortage and the importance of the affected drug to public health.''
Wells Fargo says that the Cerezyme shortage has not been able to be adequately addressed by the other manufacturer with a Gaucher enzyme on the market, Shire plc (LSE: SHP), which says that while demand for its treatment has increased sharply, it can only accommodate a limited number of additional patients until the company's Lexington facility is approved, which is due in early 2012.
Wells Fargo concludes, "We believe this executive order has positive implications for Protalix, in that it should further empower the FDA to act rapidly in situations such as the Gaucher enzyme shortage." The FDA could bring forward the approval date for the drug.
Protalix's share price fell 6% on the American Stock Exchange yesterday to $6.11, giving a market cap of $523 million, and fell 1.9% by mid-afternoon on the TASE today to NIS 21.91.
Published by Globes [online], Israel business news - www.globes-online.com - on November 1, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
February 7, 2011
Bright LED Retains Avalon for Corporate Finance Advisory Services
Bright LED has appointed Avalon Capital Ltd as its Exclusive Financial Advisor to assist the Company in financial structuring, positioning, and raising capital. The Company developed a unique platform technology to significantly increase energy efficiency for LED lighting. Their patented solution allows for double the amount of amps to flow through an LED light fixture with no added heat. Bright LED has already delivered on initial pilot orders from corporate leaders in the lighting industry. The Company's products are positioned to become the standard LED light engine for large light fixtures, worldwide.
January 24, 2011
Maxtech Networks Appoints Avalon for Corporate Finance Advisory Services
Maxtech Networks Ltd. has appointed Avalon Capital Ltd as its Strategic Advisor to assist the Company in financial structuring and positioning and raising capital. The Company has developed and markets an innovative solution for mesh network communications. Maxtech's technology provides groups of mobile users with excellent connectivity and coverage without the need for infrastructure support. The Company has an impressive line-up of multi-billion dollar defense contractors. Although Maxtech's initial focus will be on the defense and homeland security sectors, management is developing applications for the commercial market as well.
January 7, 2011
“Israel is a target market for Wells Fargo”
Avalon Capital founding partner Joey Sabet says that Wells Fargo knows Israeli financial software firms as their customer and is interested in their technology.
The year of 2010 wasn’t outstanding when it came to venture capital and the funding of start-ups, but it ended on a positive note, with 32 IPOs in Q4 of venture capital-backed start-ups on Nasdaq, double the third quarter’s figures. For 2010 as a whole, according to Thomson Reuters, there were 72 IPOs of companies of that type, making it the most active year since 2007. There were 400 acquisitions of venture capital-backed start-ups the biggest number since Thomson Reuters began keeping track, in 1985.
With those figures, US investment banks are displaying increasing interest in Israeli technology companies, and the fact that only a few have captured Wall Street recently doesn’t bother those investors from meeting with companies and the venture capital firms that fund them, in an effort to make deals.
One bank that is planning to carry out transactions this year, primarily with Israeli technology companies, is US bank Wells Fargo, which manages $1.2 trillion. The bank’s first deal in Israel was in 2007, and since then it has operated below the radar and carried out other transactions. TowerJazz (Nasdaq: TSEM; TASE: TSEM) borrowed $45 million from Wells Fargo, the bank was involved in the sale of information security company Aladdin to hedge fund Vector Capital for $160 million, and was involved in the sale of Raytel Cardiac Services to Philips for $110 million.
Wells Fargo operates in Israel through a strategic partnership with investment bank Avalon Capital, which was established in 2004 by founding partner Joey Sabet and Jonathan Schwartz. Avalon Capital has other investment banking activity aside from its work with Wells Fargo. Sabet has experience in investment banking and venture capital. He was a partner in Catalyst Fund, and prior to that he advised companies on strategic agreements, distribution, and licenses. Schwartz was a Corporate Financial Consultant at PricewaterhouseCoopers, US.
“We’re currently working on several deals in the medical devices sector,” Sabet tells “Globes”, “and it appears that at least one of them will come through in the next few weeks.”Schwartz adds, “2011 will be a good year, we have a promising deals pipeline. Israel is a target market for Wells Fargo. In 2010 there were signs of recovery, and this year the market will develop. I believe that this year there will be mergers and acquisitions, but also IPOs in the second half of the year.”
Globes: Do you mean fire sales of companies at low valuations?
Sabet: “Not at all. The giant US firms will gain from the improved economic situation, and will buy other companies in order to bring more products to the market quickly. These products can be found in Israel.”
Sabet says that when giant companies buy firms with sales of up to $50 million, the deal is based on the technology. “Revenue like that doesn’t move the needle on the meter of the big companies, but if they like the technology and believe that within 2-3 years they will be able to triple revenue, they are happy to pay and buy. Today there are several Israeli companies like that which are being checked by potential buyers."
Avalon Capital was involved in the past in the public offering of Leadcom on London’s AIM, and later on advised on the public offering of Formula Telecom and the Nasdaq IPO of Scopus. In the past year the firm was involved in the acquisition of Dekolink assets by Axell Wireless.
“Later on came the economic crisis, and the investment banking market changed because of it. At that time we signed the collaboration agreement with Wells Fargo,” says Sabet. The Avalon Capital partners say that since signing the agreement, Wells Fargo executives arrive quarterly and express interest in the Israeli market. The bank’s main focus is on financial software companies. “As a customer of Israeli companies like SuperDerivatives, OpTier, and Payoneer the bank is familiar with the advanced technology, and is interested in it,” explains Sabet. He adds that Wells Fargo is also interested in companies in sectors such as defense, industrials, technology and life sciences.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2011
November 15 2010
Miba Plast Appoints Avalon for Corporate Finance Advisory Services
Miba Plast has appointed Avalon Capital Ltd as its Financial Advisor (for services relating to) to assist the Company in financial structuring, positioning, and strategic advisory for an overseas joint-venture. Miba Plast is an innovative flexible packaging company based in Israel with exports to the US and Europe. The Company offers a variety of patented packaging products to Artisan Bakeries, In-Store Bakeries, Fast Food Chains, Quick Service Restaurants, Airlines and others. With a strong customer base, Miba Plast seeks to further expand its activities internationally.
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