Corporate Finance

Corporate Finance is a critical component of a company’s overall strategy. It provides the framework for making informed financial decisions, increasing probability of achieving long-term financial success

Our Corporate Finance skillset was acquired through a combination of advanced scientific training and decades of intense practical application in different corporate contexts, including Growth, Turnarounds and Restructurings.

What are the benefits our Corporate Finance Services bring to our clients?

Sharper Strategic Decision-Making
Optimized Capital Structure
Enhanced Financial Efficiency
Increased Shareholder Value
Financial Risk Mitigation
Better Access to Funding Opportunities

What are we able to provide to our Clients?

Corporate Performance and Financial Analysis:
- Financial Statement Analysis:
  - Vertical
  - Horizontal
- Financial Ratios Analysis: (Trends, Industry Comparison and Peer Group Analysis)
  - Activity Ratios
  - Liquidity Ratios
  - Solvency Ratios
  - Profitability Ratios
  - DuPont Analysis
Capital Investing & budgeting:
- Marginal Cost of Capital and Hurdle Rates
- Investment Decision Criteria
- Investment Program: Analysis and Evaluation
- Mutually Exclusive Projects
- Capital Constraining
- Risk Analysis of Capital Investment
- Optimal Investment Frontier & Optimal Capital Budget
Cashflow Analysis:
- Operating Activities
- Investing Activities
- Financing Activities
Working Capital Analysis:
- Liquidity Analysis
  - Liquidity Ratios
  - Operating Cycles
  - Cash Conversion Cycle
  - Primary Sources of Liquidity
  - Secondary Sources of Liquidity
  - Drags and Pulls on Liquidity
- Cash Position Analysis
  - Forecast of Short-Term Cash flow
    - Minimum Cash Balance
    - Typical Cash Flows
    - Inflows and out flows
- Short Term Investing:
  - Investment Policy
  - Investment Strategy
  - Asset Class
  - Instruments
  - Typical Maturities
  - Features and Risks
  - Key Attributes and Safety Measures
  - Accounting effects
Financial Risk Assessment:
- Identifying the risks (Market, Credit, Liquidity, Exchange, Operational Risks)
- Assessing and quantifying the risk
  - Statistical Analysis of Historical Data (Regression, Time Series, Correlation, etc)
  - Scenario Analysis
  - Monte Carlo Simulations
  - Stress Testing
- Risk Impact and Probability Matrix
- Defining strategies to manage the risk (Avoidance, Reduction, Sharing, Transfer, Retention)
- Implementing a strategy to manage the risk
Optimization of Capital Structure:
- Macroeconomic Assumptions Review (GDP, Interest Rates, Inflation, Taxes)
- Cost of Equity (Leverage and Unleverage) – CAPM
  - Risk Free rate
  - Company Beta
  - Market Risk Premium
- After Tax Cost of Debt:
  - Yield to Maturity
  - Debt Rating Approach
- Company´s Capital Structure & Cost Matrix
- Interest Coverage Ratio Test
- Debt Rating Test
- Adjusted Present Value (APV) Test
- Elaboration of Capital Structure Policy
Dividend Policies & Shares Repurchases Programs:
- Dividend Policy: (Pay-out Policy)
  - Company´s Financial Ratios
  - FCFF and FCFE Risk Analysis
  - Investment Opportunities
  - Financial Flexibility
  - Contractual and Legal Constrains
  - Regular Cash Dividends
  - Extra or Special Dividends
  - Liquidating Dividends
  - Stocks Dividends
  - Stock Split
- Share Repurchase Programs:
  - Share Repurchase Strategy
  - Financial Statements Effects
  - Valuation Equivalence: Cash Dividend Vs Share Repurchase
Balance Sheet Optimization:
- Working Capital
- Cash and Liquidity
- Fixed Assets
- Capital Structure
- Financing
- Risk Managing
Valuation, Modelling & Economics
- Asset Base Valuation
- Discounted Cash Flow (DCF) Valuation
- Relative Valuation
- Contingent Claim Valuation (Real Option)