Enthéos and e-loft (EKKO Group): a successful share capital increase

SO-MG Partners provided support to Enthéos, a family office, in the framework of its acquisition of an interest in e-loft.

In 2018 Enthéos, a family office investing in SMEs in the framework of development capital and LBO transactions, acquired an interest in e-loft (EKKO Group), a company engaged in the design and construction of timber frame houses built using a very innovative industrial approach such that the houses are first factory-manufactured and assembled before installation on the customers’ land.

To finance its growth, in excess of 50% per annum in 2017-2018, the company initiated a process of fundraising and search for a financial partner with the aim of reinforcing its financial structure and developing its activity with the following focuses:

  • Extension of its territorial presence to the whole of France;
  • A significant increase in its production capacity involving the construction of a new production facility.

The work performed by SO-MG Partners:

The provision of due diligence and investor support during the process of acquisition:

  • Performance of independent analysis of EKKO Group’s financial position;
  • Highlighting of the e-loft business model’s profitability and of the company’s normative operating profit;
  • Fine-tuning (for reliability) of the company’s business plan by breaking it down into monthly operating and cash forecasts for the first 3 years of the plan;
  • Precise presentation of the company’s net debt and of the estimated financing requirement associated with its planned capital expenditure and growing working capital requirement.

The results achieved:

e-loft’s share capital increase was successfully subscribed by the Enthéos family office. The company’s activity is currently in line with the business plan and its cash requirement has been financed in accordance with the forecasts prepared.

The two key success factors:

  • Tailored financial analysis providing the investment fund a reliable picture of the company’s financial position;
  • Detailed operating analysis of the company’s activity enabling the construction of a reliable business plan disclosing the company’s 3-year financing requirement.