Corporate Finance Services
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 skill set was acquired through a combination of advanced scientific training and decades of intense practical application in different corporate contexts, including Growth, Turnarounds and Restructurings.
- Sharper Strategic Decision-Making
- Optimized Capital Structure
- Enhanced Financial Efficiency
- Increased Shareholder Value
- Financial Risk Mitigation
- Better Access to Funding Opportunities
- 1. Corporate Performance and Financial Analysis
- a. Financial Statement Analysis:
- i. Vertical
- ii. Horizontal
- b. Financial Ratios Analysis: (Trends, Industry Comparison and Peer Group Analysis)
- Activity Ratios
- Liquidity Ratios
- Solvency Ratios
- Profitability Ratios
- DuPont Analysis
- a. Financial Statement Analysis:
- 2. Capital Investing & Budgeting
- a. Marginal Cost of Capital and Hurdle Rates
- b. Investment Decision Criteria
- c. Investment Program: Analysis and Evaluation
- d. Mutually Exclusive Projects
- e. Capital Constraining
- f. Risk Analysis of Capital Investment
- g. Optimal Investment Frontier & Optimal Capital Budget
- 3. Cash Flow Analysis:
- a. Operating Activities
- b. Investing Activities
- c. Financing Activities
- 4. Working Capital Analysis:−
- a. Liquidity Analysis:
- i. Liquidity Ratios
- ii. Operating Cycles
- iii. Cash Conversion Cycle
- iv. Primary Sources of Liquidity
- v. Secondary Sources of Liquidity
- vi. Drags and Pulls on Liquidity
- b. Cash Position Analysis:
- i. Liquidity Ratios
- Forecast of Short-Term Cash flow
- Minimum Cash Balance
- Inflows and outflows critical drivers
- i. Liquidity Ratios
- c. Short Term Investing:
- i. Investment Policy
- ii. Investment Strategy:
- iii. Asset Class
- iv. Instruments
- v. Typical Maturities
- vi. Features and Risks
- vii. Key Attributes and Safety Measures
- viii. Accounting effects
- a. Liquidity Analysis:
- 5. Financial Risk Assessment:
- a. Identifying the risks (Market, Credit, Liquidity, Exchange, Operational Risks)
- b. Assessing and quantifying the risk
- i. Statistical Analysis of Historical Data (Regression, Time Series, Correlation, etc)
- ii. Scenario Analysis
- iii. Monte Carlo Simulations
- iv. Stress Testing
- c. Risk Impact and Probability Matrix
- d. Defining strategies to manage the risk (Avoidance, Reduction, Sharing, Transfer, Retention)
- e. Implementing a strategy to manage the risk
- 6. Optimization of Capital Structure:
- a. Macroeconomic Assumptions Review (GDP, Interest Rates, Inflation, Taxes)
- b. Cost of Equity (Leveraged and Unleveraged) – CAPM
- i. Risk Free rate
- ii. Company Beta
- iii. Market Risk Premium
- c. After Tax Cost of Debt:
- i. Yield to Maturity
- ii. Debt Rating Approach
- d. Company’s Capital Structure & Cost Matrix
- e. Interest Coverage Ratio Test
- f. Debt Rating Test
- g. Adjusted Present Value (APV) Test
- h. Elaboration of Capital Structure Policy
- 7. Dividend Policies & Shares Repurchases Programs:
- a. Dividend Policy: (Pay-out Policy)
- i. Company’s Financial Ratios
- ii. FCFF and FCFE Risk Analysis
- iii. Investment Opportunities
- iv. Financial Flexibility
- v. Contractual and Legal Constraints
- vi. Regular Cash Dividends
- vii. Extra or Special Dividends
- viii. Liquidating Dividends
- ix. Stocks Dividends
- x. Stock Split
- b. Share Repurchase Programs:
- i. Share Repurchase Strategy
- ii. Financial Statements Effects
- iii. Valuation Equivalence: Cash Dividend Vs Share Repurchase
- a. Dividend Policy: (Pay-out Policy)
- 8. Balance Sheet Optimization:
- i. Working Capital
- ii. Cash and Liquidity
- iii. Fixed Assets
- iv. Capital Structure
- v. Financing
- vi. Risk Managing
- 9. Valuation, Modelling & Economics