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Opportunity: FCH provides a Software-as-a-service (SaaS) application for the validation of fuel transactions between fuel suppliers and customers with large transportation fleets. FCH had validated it’s product through customer partnerships with major recognized brands such as Coca-Cola and FedEx. After reaching these key validation milestones, FCH was in need of funds to finalize development and develop channel partnerships with fuel providers. How AMP Helped: AMP developed a detailed company valuation and utilized the financial projections to evaluate various options of how to structure the deal. The valuation included a cash flow analysis as well as a comparison of FCH to private transactions and publicly traded companies in similar industries. The AMP model allowed FCH management to understand the trade-offs between management, current shareholders, and future investors for various deal options.
Results: Given the recent economic environment and their investor’s conservative approach, the team selected between a Preferred Stock and Convertible Debt structure. Ultimately, FCH elected to complete a Preferred Stock round to give investors a lower-risk return of their invested capital. |
