Financial Advisory
Financial Advisory
Advisory services are comprised of a wide spectre of services described below. In close cooperation with the client we bring forward your business processes in line with legal compliance and framework. Tax advisory, as a central advisory service, helps you navigate more easily through a large number of local and international tax regulations.
Financial Due Diligence
Due diligence helps understand the target company’s business, because financial reports often do not show the real picture, as they usually do not show future potential liabilities.
Due Diligence services are:
- Profitability Analysis – GM
- Adjusted EBITDA/EBITNet Working Capital Analysis – required levels and potential shortages
- Net Debt Analysis
- Net Assets Analysis
Capital Raising & Restructuring
There are two main sources of capital raising:
- Debt Raising – commercial bank loans, EBRD loans and other potential debt financing (e.g. mezzanine funds)
- Equity Raising – usually recapitalization process
Financial restructuring services include the following activities:
- Feasibility Studies
- Preparation of business plans & identification of areas that can improve the company’s cash flow
- Presenting restructuring plans to creditors and potential investors & support in the implementation process
Business Valuation
Company valuations or asset valuations could be performed due to following reasons:
- Sale of the company or assets
- Impairment test to estimate value of goodwill
- Squeeze out processes or redemption of co-owners
- Valuation of shares of a company if the shares are used as collateral (e.g. loan collateral)
- Recapitalisation purposes
- Initial public offering (IPO) purposes
Valuation methods:
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- DCF method
- Multiples (relative) method
- Net asset method (static)
Mergers & Acquisitions
In a company sale process, maximization of shareholder value is more likely if sale process is managed by experts since this is a complex process which is not subject to the ordinary activities of the seller (or buyer).
M&A process includes the following activities:
- Company Valuation
- Transaction Preparation (List of potential investors, teaser, NDA, Information Memorandum, NBO)
- Communication with potential investors
- Preparation for Due Diligence process
- Binding Offers and negotiations
- Transaction Closing