Corporate finances are a segment of finances dealing with sources of financing and equity structure and their goal is to realize as much renewable income source as possible or one/time profit. As corporate finances advisors we are able to help subjects from planning development strategy, realization with regard to source of financing, purchase of subjects, restructuring assistance up to the sale of the subject.
Evaluation and creation of possible strategies
First step of corporate management is to set goals and strategies. General goal is to maximize profit i.e. income with regard to the subject’s situation (organization, market, workforce, products, availability of financing and similar) and for that it is necessary to develop individual strategies and goals. Strategies can vary:
• acquisition of other subjects or jobs,
• introducing a strategic partner/investor,
• restructuring (financial, operative, organizational),
• sale of subjects or jobs,
• asset activation,
• starting an investment cycle.
We are here to offer assistance with creation of the business strategy itself, advise you on the already existing strategy and expert assistance in any business segment.
Financial and operative restructuring is necessary in cases where the existing organization is unable to meet set goals, mostly financial goals. Most common cases where restructuring is necessary are preparation for sale or introduction of a strategic partner, restructuring in order to align with new goals, restructuring after acquisition or for the purposes of financial stability and similar. Consequently, components of our services in this segment are related to:
• creating a financial restructuring plan,
• creating an operative restructuring plan,
• assistance with negotiations with creditors and investors,
• assistance with implementation of restructuring,
• assistance with attracting investors.
Valuations of companies as subjects or certain economic units is a service we provide using our own experts. The need for valuation usually occurs with:
• a partner entering equity,
• acquisition or sale of a subject,
• payment of co/ownership share (e.g. buyout, retirement and similar,
• IPO preparations,
• submitting securities as lien,
• estimates in accordance with the requirements of accounting standards.
In addition to business valuation and their sections, operational units, estimates can be performed for intangible assets (e.g. brand valuation), real estate as income units and certain other assets. Estimates are performed using internationally recognized methods depending on the subject, purpose, etc.
Acquisitions, absorption, divisions and mergers
Acquisition process starts by defining the goal where we can be involved as consultants, in the sense of assistance in defining the target profile. This section is irrelevant if the client already has a defined target.
After defining the target or multiple targets they are negotiated with regarding purchasing and due diligence procedures.
After due diligence is completed, advice is given on further actions, if necessary a valuation is performed and elements for a binding offer are proposed (if the purchase is to be carried out).
When and if the parties are in agreement on the sale, an agreement is drafted and transaction concluded.
In this segment we provide audit-accounting services: calculation of share/stock exchange ratio, creating balance sheets before/after status changes and similar.
Due diligence or deep dive are the services ordered by the client interested in acquisition of a business (most often a commercial company) or when entering joint ventures in order to minimize the risks stemming from such endeavor.
Due diligence services are usually performed as shortened or in full, depending of the client’s needs, budget, size of subject and similar. Due diligence usually includes financial, tax, legal, commercial, HR and technical component. Due diligence can include certain financial analysis.
Sale of operations or a part of operations
Sale of operations is a complex endeavor the preparations for which should begin much in advance with regard to the planned transaction. If we compare the sale of a business with the sale of a used vehicle we can draw parallels as selling a dirty and defective vehicle or one that was serviced and cleaned. With the sale of a business, the preparation affects the price even more than with the sale of a used vehicle. Of course, said preparations are much more complex.
When providing a complete service of sale of operations we start with the analysis/audit of the subject that is being sold and suggestions on what could and should be done in order to make it more attractive to prospective buyers. This initial stage we can call «sale planning».
In the «development stage» we perform all actions necessary to make the sale more attractive, such as: limited restructuring, redefining strategies and plans and similar.
In the «transaction preparation stage» an internal valuation is performed and the transaction is structured, a list of possible buyers is created together with transaction materials.
In the following stages communication is established with prospective buyers, we provide advice regarding the due diligence performed by the buyer and the sale is agreed upon.
The last stage is signing of the purchase agreement.
Our recommendation is that, if you intend to sell operations in the future, you contact advisors immediately. The sooner you contact them, your chances of the sale being completed successfully and lucratively are greater.
Cash is one of the basic resources needed for the development of every business and is often an insurmountable limiting factor for many entrepreneurs.
If you ask us, financing counseling is a crucial complementary service in the «right hand» service package and we are constantly developing it.
Together with our external partners we designed a series of such services that are constantly being developed and at the moment we offer the following:
1. Financing consulting – expert assistance with selecting the most affordable source of financing for subjects, keeping in mind legal regulations and professional rules.
2. Qfact CASH POOL services – our own Cash Pool to decrease the financing cost for our clients and enable greater profit to clients that have available funds.