Our Financial Advisory services presently include three areas: (i) Restructuring advice for corporate or state owned enterprises and for banks in distress; (ii) Divestiture advice for privatization and disinvestment of state owned enterprises and for exit from emerging markets investments including distressed situations; (iii) Referral services for investment managers and for cross border joint ventures. We do not provide financial advice to individual investors or family offices.
Our restructuring services include Corporate, Financial and Organizational restructuring. We do not advise on or do Operational restructuring. The entities that we offer restructuring advice on, include non bank corporations and banks. Presently, we do not cover restructuring of non bank financial institutions.
The following summary is helpful in clarifying the scope of the three types of restructuring that we do.
- Corporate Restructuring will typically involve unbundling or integrating the assets and businesses of the entity, including divestiture of assets or businesses in order to rationalize the entity.
- Financial Restructuring will primarily focus on strengthening of the balance sheet and identify options for treatment of assets and liabilities including restructuring or rescheduling or refinancing debt, recapitalization etc.
- Organizational Restructuring addresses the issue of the impact of the restructuring on employees and find ways to ensure compliance with Government policy with regard to pensions social security and other rights and entitlements of the employees. In addition, this includes resolving issues such as redundancy, severance, retraining, re-assignment, outplacement etc.
- Operational Restructuring includes any activity to improve the income statement other than through financial restructuring as described above. We do not provide this service.
Non Bank Corporations
Our services cover both state owned enterprises (SOE) and emerging market investments including transnational subsidiaries. For SOEs we specialize in reducing the fiscal burden and preparing these for divestiture or if they are to remain in state hands, to improve and strengthen the corporate governance of these SOEs. For emerging market investments, both private equity or corporate, we would typically help with loss makers and distressed situations. We work to a clearly defined and agreed set of deliverables and timeline so that success or otherwise may be objectively determined.
Our bank restructuring offerings are at two levels. (i) At the systemic level where we can work with Governments and Central Banks on first response actions and also to put in systemic reforms in Bank regulation and supervision. However, since eventual losses depend significantly on collateral and systemic insolvency regimes, systemic banking reforms need to be accompanied by systemic insolvency reforms and individual bank restructuring often has to be accompanied by corporate debt restructuring. Our expertise is in offering special insight into balancing short- term concerns about avoiding bank runs and a credit crunch with medium- term concerns about limiting moral hazard and fostering a robust banking system. We also can advise on institutional arrangements needed to manage impaired assets including approaches involving changing ownership - domestic mergers, foreign takeovers and taking banks into state ownership. (ii) At the individual bank level we mostly offer assistance to Governments and central banks to help restructure state owned banks including dealing with their non performing assets and in particular - non performing farm debt resolution.
In addition to privatization and disinvestment of SOEs, our advisory services also include divestiture or other disposal of troubled emerging market assets and investments of emerging market private equity firms or transnational corporations.
State Owned Enterprises
In this part of our practice we provide services in principally in three areas:
(i) Transaction Advisory Our Transaction Advisory services include : (a) Evaluation of Market Readiness (b) Divestiture Strategy and design of Regulatory Framework if needed. (c) Restructuring for Divestiture ( Financial, Corporate and Organizational) (d) Information Memorandum Publicity (Road Shows), (e) EOI and RFP process management Due Diligence, (f) negotiations, (g) contracts and closing (h) Transition plans, post transaction support and Compliance Reviews
(ii) Public Relations for Private Participation
- Public Information Programs In this practice area, we bring expertise in two areas: Strategic Program Design and Implementation Assistance. This assistance helps to build consensus and general public acceptance of the program and its benefits. This includes assistance to: (a)Identify The Audience Assess Opinions & Influence Set Objectives : e.g., Behavior Changes Required (b) Design the Message : To Audience Point of View (c)Select Channels (d) Evaluate Results
- Specific Communications Programs for Buyers. This assistance helps to generate demand for the offering and increase competition. In this area we can provide assistance to: (a)Adequately Publicize Program (b) Increase Transparency (c) Generate Buyer Interest (d) Increase Competition (e) Generate Investment
(iii) Sector Specific Reforms (a) Sector restructuring and modernization: (b) Legal and Regulatory Framework (c) Design and implement opportunistic programs
Emerging Market Assets
We help emerging market Private Equity firms and Transnational Corporations recover their emerging market investments in distressed situations. We help to restructure and package the portfolio entity for investment, refinance, divestiture or liquidation where needed. Our global network of Associates, consultants and corporate alliances have knowledge of and access to middle market businesses and investors in most regions of the world. This gives us the ability to widely market and get the best deals for our emerging market client.
The large network of contacts of our Associates offers the opportunity for us to make introductions for our clients with these contacts and to match their mutual needs. It is important to note that our referral services only include parties with which we have a pre-existing relationship. We do not utilize any general or public means of solicitation with respect to our referrals e.g., no cold calls, mass mailings or open websites. In the event a potential investment is involved, we do not, in our referrals, make any representation as to the merits of any such investment or party. Nevertheless this referral service brings significant value to our clients and helps investment managers gather assets in emerging markets and our corporate clients find suitable matches in these markets for joint ventures and other business and trade relationships.