Corporate Finance

Corporate Finance's services mainly entail assistance and advisory in the following fields:

• Acquisitions and sales of companies
• Mergers and acquisitions and other ownership-related changes
• Listings and de-listings of securities
• Financing and offerings
• Financial restructuring
• Strategic review

Arctica Finance's Corporate Finance team holds extensive experience and knowledge in the aforementioned services, both domestically and abroad, and has led or participated in many of the largest corporate finance deals in Iceland in recent years.

Arctica Finance's Corporate Finance is independent and impartial. Arctica Finance does not engage in lending activities and Corporate Finance's experts are therefore independent in their analysis, evaluation and selection of investments or financing options, which results in professional service for the benefit of clients.

Acquisitions and sales of companies

Arctica Finance's Corporate Finance department advises on acquisitions and sale of companies or business units. In such a process the service is often project management, exploring opportunities, performing valuations, analysing value-adding factors, advising on structure and methodology, handling negotiations and transaction closing.

When looking for companies or business units to buy, Arctica Finance's services include choosing respectable companies, checking whether the respective companies are for sale and providing advice on their acquisition and financing.

Arctica Finance provides a variety of advice when it comes to the sale of companies or business units. We work closely with the seller to develop a sales strategy, find the right buyer and get the most favorable terms. It is understood that each seller has his own ideas and goals when selling, and assistance and advice are provided to achieve those goals.

Mergers and acquisitions and other ownership-related changes

Arctica Finance's Corporate Finance provides assistance and advice in formulating a clear merger and/or acquisition strategy, manages such a process and takes care of, among other things, opportunity analysis, value assessment, analysis of value-added factors, consultancy regarding methodology, management of negotiations and closing of transactions. Corporate Finance supervises the execution of takeover bids for shares of listed companies, redemptions and de-listings of shares on the stock exchange and provides assistance with leveraged buyouts.

Listings and de-listings of securities

Arctica Finance's Corporate Finance supervises and provides a wide range of advice when it comes to listing and de-listing of securities on the stock exchange, whether it is an initial public offering, the increase of the capital of listed companies, the listing of bond classes or the listing of other securities. Corporate Finance oversees the listing process, provides advice to companies and sellers in the preparation of listing, oversees the preparation of the necessary due diligence, oversees communications with the stock exchange and financial supervisor authority, oversees the preparation of prospectuses and investor presentations. Corporate Finance also supervises the electronic issuance of securities in the systems of securities depositories, e.g. Nasdaq CSD.

Arctica Finance is a Certified Adviser and is authorized to mediate listing on Nasdaq First North Market. The Nasdaq First North Market is tailored to the needs of growth companies that are taking their first steps as a listed company.

Financing and Offerings

Arctica Finance's Corporate Finance analyses the financing options that are most suitable or optimal for clients. Considerable value increase can often be achieved by optimizing forms of financing, based on risk, duration and terms of financing. Services related to financing include, among other things, analysis of the current financing structure and proposals for the optimal financing structure, making presentations for expected borrowers, analyzes of financing offers from lenders, assistance with negotiations, advice on a possible share capital increase and in connection with the financing of leveraged buyouts.

Financing can be raised through public or private offerings of securities. Such services include:

• To analyse the issuer and his situation
• To advise on forms of financing
• To communicate with investors
• To prepare presentation material and information memorandums
• To prepare prospectuses
• To manage listings of securities on the stock exchange
• To arrange the issuing of securities electronically at securities depositories
• To advice on and manage public or private placements of securities

Financial restructuring

Arctica Finance's Corporate Finance provides pragmatic advice on financial restructuring to its clients. Such services include:

• To advice on financial structure
• To propose possible alternatives for refinancing
• To evaluate business plans and capex plans, considering free cash flow to finance the servicing of interest and capital repayments, other liabilities and dividends
• To prepare proposals on new financial composition, e.g. amendments of terms and interest levels, conversion of debt to equity and issue new equity. The aim of such proposals is to align debt repayment profiles to the expected cash flow
• To prepare presentation material for lenders and/or investors
• To manage negotiations with new and/or existing stakeholders
• To assist in preparation of proposals, agreements and other legal documents

Strategic review

Shareholders and lenders are constantly considering their options for maximizing the value of their assets. Arctica Finance's Corporate Finance offers an analysis of available options in terms of value maximization. Stakeholders want to understand, for example, when is the right time to divest, if and when companies should sell business units, or if, on the contrary, they should expand business units through acquisitions.