A few days ago the birth of the «BME Scale» was announced, a New stock market for companies called «scale-ups»». We talked in depth about this new segment with . Commercial Space partner Juan Antonio Botella From the Alicante law firm Devesa & Calvo Abogados with offices in Alicante, Madrid and Valencia.
What is this about the BME Scale?
BME Scale is a new Segment in Bolsas y Mercados Españoles (BME) It is aimed at companies that are still in an early stage of development but already have a proven and scalable business model in any industry. Therefore, a new step has been taken to bring more companies and entrepreneurs from BME closer to the increasingly unknown world of the stock market. companies will be able to start their journey in this new market called BME Scaleso if he continues to grow he can then join BME Growth (formerly MAB) and continue his promotion, eventually switch to Permanent MarketAs can be seen in this infographic provided by BME.
Which companies can be listed on the BME Scale?
The BME Scale will specifically address so-called “scaling ups” defined as: companies in rapid growtha proven business model and turnover and/or a minimum investment of one million Euros. So they have already passed the initial “starting” phase and are no longer attempting to go public to obtain an alternative source of funding to scale your business, develop new projects and business lines, or facilitate organic and inorganic growth for you and your business group.
In this way, BME aims to add the capital market to the financing alternatives that companies trying to buy back from a certain growth moment already have. receive investment from venture capital, business angels and crowdfunding, among other available alternatives.
So, do such companies, which are only called “scale-ups”, enter the BME Scale?
No. This new segment of BME is also Open to other types of companies such as expanding SMEs, SOCIMIs even companies relatives those who want to join a fully listed market to enjoy all its benefits.
Are you also geared towards family businesses?
That’s it. Some people think that going public is not a good option for family businesses, which I think is not true in many cases, not just because: There are many family businesses that have been trading for many yearshowever, it may be an option precisely because a company’s shares can be freely transferred to third parties and investors. avoiding many institutional conflicts between siblings or family branches, and if the company in question had shares, these would not have occurred. can be sold by anyone for a certain price The result of the fact that it is only listed and regulated in one market, daily by market, at any time (as long as there is a buyer) and also with full transparency in company accounts.
However, in these situations, on the one hand, it is very important for the founding partners or family businessmen and investors who have access to the company to live together in peace. existence of a good partnership agreement internal relations and functioning in society. to decide in all corporate bodies, among many other issues.
Why do they say that going public attracts investors?
We’ve been living for yearsraising capital to finance projects and initiatives or grow SMEsoften takes place in so-called “funding rounds”.
Investors, of course, seek profitability in their investments, whatever the type, and in many cases we have to talk to our clients about how to exit before they have arrived.
Relatedly, selling the entire company “to the next” is the most common option, although it doesn’t necessarily have to be on the roadmap for co-founders or family businesses. For this reason, the number of companies that transfer their capital to investors while seeking capital from the beginning is increasing day by day. request to list companyultimately this can offer investors the same result of having the option to sell “to the next” and make their investment profitable.
What advantages does BME Scale offer compared to existing BME Growth or other markets?
Without going into too much legal and financial details, BME Scale’s greatly minimize legal and organizational requirementsfor example, by not requiring a Liquidity Provider or complying with the minimum shareholding requirements required by other markets such as BME Growth, which will be the decision of each company. The listing brochure is also simplified to what is required in other markets and The Registered Consultant will decide what due diligence is required for each organization..
Logically, this simplification of requirements also entails a significant reduction in exit costs, which has ceased to be a barrier to access as one might think, and is now even greater with the emergence of such a market.
When will BME Scale start working?
They state that from BME The first Registered Consultants will be registered from September.so we’ll probably be ringing the first bell for the BME Scale in the last quarter of this year, and some of them our office is already working on.
Devesa & Calvo Lawyers