Better Valuations, Better Growth & Superior Profitability

The Collaborative Sector Specific IPO - Disrupting the traditional investment banking model

a model suitable for any company in any sector


You were referred to this page as Kanexo believes your company is suitable for an attractive business proposition - one that will rapidly take it to the next level.  Working with our business associates, we solve the problem of poor valuations and stagnant growth that can creep in after years of operating an enterprise. On the open market most companies are valued at around 3-4x their net profit - often not a lot when you consider the sheer hard work and effort entrepreneurs have invested. Fact: in 2015, 26,000 businesses were sold in the US for a average multiple of 2.6x net profit.

The reason for poor business valuations?
  1. They are inherently risky - often relying on a few key customers or staff hence if they go it can lead to a very bad year in terms of profitability
  2. Being small you cannot scale up for the bigger contracts - they often go to the 'big' players who cream off all the profit
  3. There is no liquidity for an investor - if one was to invest $1m they had better be prepared for the long haul before they can get their investment back.​

Is there a solution?
To address these issues a model was created - a sector-specific-collaborative-IPO.  We take a group of companies in the same industry, each with their own revenues and profits, then give them a favourable valuation based on their net profits, then convert their private shares for shares at a large multiple in a holding company that is listed. This addresses the issues above by:
  1. A portfolio of companies stabilises the revenues and profits hence there is more consistency and less risk of an unprofitable year
  2. You report the revenues of the holding company when pitching for business - allows you to win the larger contracts to grow faster
  3. Shares are publicly traded hence for an investor the is much greater liquidity. And you can see your own net worth on the public market.
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What are some of the advantages to your business?
  1. We list typically at around EUR1 - so for example if your net profit was EUR500K you would get EUR500k times a favourable multiple in stock
  2. We are flexible - if you want to take a little money off the table at the start we can give some cash and rest of the valuation in stock
  3. A portfolio approach allows you to vastly expand your client base and reach - the other entrepreneurs are your new network in the same industry. The huge market capitalisation will put your company in the same league as your biggest competitors
  4. We seek out and add more debt free and profitable companies into the structure - hence increasing market cap, in turn the value of your shares will grow
  5. You can attract better talent using public stock
  6. We issue more shares for companies that improve their profitability year on year at a 3x multiple​
  7. Most importantly this is NOT a take over - you are still 100% responsible for the operations of your company, its brand and people as before.

So is this right your business?
  1. We are actively working with companies and entrepreneurs in the following sectors: Marketing, Sustainability, Renewables, Business Process Outsourcing, IT / Data Analytics, Logistics, Human Resources and Training & Development
  2. The model works best for companies making at least USD$380,000 net profits and those that have no or minimal debts
And our main differentiators are that we list on a liquid exchange, using the second biggest denomination in the world (Euros) and even if you decided to join and you get a better offer later or just decide you no longer want to be part of the deal - we provide a side letter that allows you to walk away.  That is the confidence we have in getting you the best valuation day one and in growing your company faster than you can organically.

The power of our approach
A Marketing company collaborative IPO that we listed in May 2016 was already up over 700% in 2 months - our target is to use strategies to drive it from a EUR14m market capitalisation to EUR500m within 10 months. 

What to discuss more or the next steps?
Use the contact form below.