In a sense the investment consulting is a follow up of the financial consulting – i.e. assisting the client with the selection of external funding tools attraction, search for a future investor/investors, structuring of investment attraction activities, and direct support in these types of activities etc. A necessary stage for any type of external funding attraction exercise is drafting of investment memorandum/emission prospect – a document providing a comprehensive description of the client's company and allowing for investment risks assessment. Financial and investment strategies developed allow us for to proceed with one of the below scenarios jointly with the client.
a) Emission of Eurobonds
In the variety of debt securities types and species whose emission could help client to ensure capital inflow, we could pick up a most appropriate solution taking account of his peculiarities and wishes in the respect of expenses for money assets attraction, interest repay schedule, legal aspect of borrowings etc.
b) Securities Initial Public Offering – IPO
If the client stands ready for a full-fledged operations at the public capital market, we could offer our assistance in European stock exchange market access. This step requires a serious and long lasting preparation, but also brings some non-financial benefits apart form the additional capital – better company's market image, higher level of suppliers and clients confidence. Moreover a successful IPO exercise brings to a better financial markets recognizability, which at the end of the day leads to broader company's access to alternative funding sources and minimizes the cost of their attraction.
c) Portfolio investors' capital attraction
In the situation when the client doesn't wish to enter an open borrowings market, and undertake a public securities; offering we could help him finding necessary financing among a limited number of portfolio investors – investment funds of Private Equity, Venture Capital type or associations of several different investment funds. As a rule these investors acquire small share holdings in the companies (in aggregate not exceeding 30-40%) and are trying not to influence the company's management activities, obtaining the profit from the dividends payments and the most important – form their share holdings resale in couple of years since their acquisition (2-5 year).
d) Capital attraction through a private securities offering
We also offer our clients a possibility of a private securities offering for a wide circle of individual and institutional stock exchange market financial investors («pre-IPO» type offer). Such emission requires that the company's securities should be introduced into the circulation at a regulated market within a pre-defined time horizon. This type of securities offering frequently requires a broker's participation due to a strict regulating authorities'/stock exchange's control, and per se are a prelude of a full fledged IPO.
e) Merger and acquisition transactions, companies' debt buy-out
Also in the framework of investment consulting we consider assistance to our clients in their business sale transactions or in acquisition of other companies, as well as on companies; corporate rights buy-out by their management (MBO – management buy-out transactions) or companies' buy-out with the use of borrowed funds (LBO – leveraged buy-out transactions).
In the course of any of the operations mentioned above our Agency provides a complete client's follow up and jointly with our European partners shall:
- draft a future transaction's structure;
- draft investment dossier – investment memorandum/emission prospect;
- prepare other necessary documents;
- calculate the transaction's financial parameters;
- prepare presentation materials and follow up the client during the presentations for potential investors;
- upon the client's request undertake monitoring of the situation development following the transaction's conclusion.