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Decisions related to financial management – whether at the investment or financing end- stand at the very core of companies’ value creation process. Decisions of such critical importance to the survival and prosperity of corporations cannot be made but after thorough analysis of objectives, underlying conditions, surrounding variables whether of internal, economic, market or industry, and reasonable forecasts for the future.
Whether clients are considering an investment opportunity, structuring a deal, seeking an optimal financing scheme along with the underlying terms and approaches of financing, or they are concerned about adopting sound risk management strategies, B.e.e. commits to support them in reaching the decisions that maximize the value of their firms backed by deep research, rigorous analysis of the situation in place and surrounding factors, exploration of alternatives, uncovering of opportunities and risks, and to provide objective and constructive recommendations.
Valuation Services
When partnering with Business engineering experts (B.e.e.), you can feel confident you are being delivered with the most accurate estimate of value for a project, division, intangible asset, or company for purposes of mergers, acquisitions of equity stakes, buy-outs, development of units, factories, new ventures or products, etc.
For the client to base such strategic decisions on sound criteria, B.e.e. captures all aspects of a valuation assignment and follows the complete and lengthy process of:
Due diligence including background checks, interviews, and analysis with focus on any hidden pitfalls, risk factors, and identification of the drivers of value potentially allowing the client to ensure that the information he holds is accurate Thorough industry, competition, and economic analysis: we analyze current market conditions, keep abreast of market trends reigning the specific industry and economy, and study potential competition moves, and the impact of expected changes in surrounding variables not limited to regulations, technology, etc. Thorough analysis of the company / asset / project’s qualitative and quantitative financial factors and SWOT analysis Identification of the key drivers of value and the risk factors Undertaking the necessary projections and estimations and careful application of the proper factors and parameters reaching to the most accurate estimate of value under multiple scenarios and subject to sensitivities to key variables Unveiling alternative opportunities and advising on the optimal courses of action Handling negotiations with third parties to ensure reaching out to the most favorable terms for the client
Development of Financial Models
Dynamic markets and environments drive companies into a constant need to assess the viability of their decisions moving forward. Capturing the most lucrative opportunities often requires that such decisions be made within short timeframes. Yet, the responsibility of executives to ensure that these are the right and most value creating decisions should never be overlooked.
B.e.e. has gained extensive experience in the development of sophisticated and integrated financial models. Such models grant decision makers at companies access to quick and accurate answers to the most complex decisions to be made, whether relating to evaluation of investment opportunities, working capital management and capital budgeting, identification of the optimal funding choice, or corporate valuations. The financial models are tailored to the client’s needs, its structure and nature of its operations.
A more sophisticated version of the financial models expands a step further by linking all investment and financing decisions a company encounters reaching to an estimation of corporate value in an integrated and dynamic manner. It thus allows companies to examine the impact of any investment or financing decision, or any combination therein, on value creation. Decisions could also be made keeping the risk perspective in mind by running sensitivity and simulation analysis on the main internal and external value drivers.
Corporate Financial Advisory
B.e.e. assists its clients in assessing their strategic planning from a financial perspective with the central aim of value creation. Such services involve analysis of the portfolio of businesses and projects comprising a company as well as analysis of the impact of changes in the portfolio composition or the underlying assumptions on company performance. In doing so, B.e.e. performs a thorough analysis of the client’s strategic direction, operations and activities, financial situation, business and economic environment, market conditions, etc. Decisions associated with corporate portfolio composition ultimately include investment decisions, capital deployment, restructurings, divestitures and spin-offs. A related area of support and insights provided by B.e.e. is also the optimal allocation of capital among business units/ projects. Within the frame of the clients’ objectives and the dynamics of the situation in place, B.e.e. identifies the various alternatives present and advises on the means to maximize value.
While undertaking corporate growth and development programs, companies need to ascertain they have the right means to back up their growth initiatives within the frame of the market and economic conditions in place. In most of the cases, such means would include securing the financial resources necessary to support strategic objectives, a task that is becoming more challenging in light of a no longer easy access to capital.
In this respect, the scope of our advisory services is not limited to financial strategy development and growth planning. B.e.e. assists its clients in every aspect of their financing decisions, including advice on decisions to raise equity or debt, and develops the optimal capital structure. When the decision to issue debt or equity is made, B.e.e. provides its insights on the pricing and other terms of the financing scheme as well as on the optimal timing for issuance of debt or equity based on current and forecasted market conditions. Furthermore, B.e.e. supports its clients throughout the process of private placements of debt and equity, and capital acquisitions, etc. In doing so, we develop Private Placement Memorandums that communicate the right message to targeted private investors, we deliver what is needed to enable companies to raise capital in the most valuable manner, and we raise the attractiveness of the project/ company to potential buyers.
In essence, our corporate financial advisory services encompass offering advice and support on the following matters, among others:
- Financial strategic planning
- Investing decisions and capital deployment
- Restructurings, refocusing, divestitures and spin-offs of assets and operational units from a value creation perspective
- Allocation of capital among business units/ projects taking into account potential synergies, cost sharing, correlation, diversification and risk minimization, and value creation
- Financing decisions, decisions to raise equity or debt, optimal capital structure
- Private Placements of debt and equity deals, advice on issues of pricing and timing
- Private Placement Memorandum for projects/ companies
- Capital Acquisitions, Initial Public Offering (IPOs) and Seasoned Equity Offerings (SEOs)
Deal Structuring
Whether standing in an expansion or contraction economic cycle, businesses seek to enter into deals or transactions that support their growth strategies, allow them to exploit attractive opportunities, or realize synergies and cost reductions. Such deals would take forms of buy-outs, Mergers and Acquisitions, takeovers, joint ventures, partnerships, project finance, etc.
B.e.e. supports its clients in all the phases of structuring a value-creating deal. We develop an understanding of the client’s objectives and undertake a due diligence of the company ‘s value drivers, business operations, financial structures, and forecasts for general economic and market conditions. We highlight strategic opportunities and recommend risk mitigants. Where a target company is selected, B.e.e. advises on the strengths and weaknesses of the target/ partner and on the potential fit between the two parties in achieving the strategic objectives. We assess the opportunities for synergies or cost savings, unlock integration value, and pinpoint inherent risks. In any case, B.e.e. provides constructive and objective advice in relation to deal terms, pricing, exit strategies and timing and supports the client in undertaking the negotiations and improving their position; all to ensure that maximized value is being created. Once the structure of the deal is finalized, B.e.e. assists the client in closing the transaction and commits to provide any after deal support required for ensuring sound implementation, systematic operations, or effective and fast integration that are essential to achieving the objectives of any deal.
Equal support is provided for structuring project finance deals, where we provide constructive recommendations as to managing the infrastructure of the project, assisting throughout the phases of feasibility, analysis, setting and enhancing the terms of the dealings with banks and partners.
Risk Analysis and Management
While risks are concentrated in some industries more than others, challenging and risky environments are increasingly shaping the dealings, transactions, and operations of companies in all industries worldwide.
While it is no doubt that volatile markets and turbulent times would require extensive focus and attention to risk mitigation, risk management should be thought of and duly considered in times of prosperity and expansion as much as in times economic and market difficulties. It is in the good economic conditions that risk management should be implemented in order to prepare and mitigate for the harder and unstable times.
B.e.e. offers its clients recommendations and action plans as to manage credit, market, operational and strategic risks. This entails B.e.e. to ensure that a risk strategy is clearly set and that risk appetite is defined and communicated which will ultimately provide a framework for operations and control.
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