Financial Advisory

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:

• • 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