Capital is essential for a company’s growth plans. A company must be certain that equity is the most suitable form of instrument before deciding to engage with an equity investor.
Different equity structures translate to different outcomes. Hence it is crucial that both the company and the investor structure an investment that is suited for both parties whilst generating a win-win situation.
When a company or an investor makes an investment, having control over the investment is necessary in order to ensure that it is according to its purpose and that it achieve its goals. Whether it is a company participating in a joint venture or raising capital for a subsidiary company, investments made by private equity firms or other investors may require a representative in the board to ensure the aforementioned control.
This course is to provide insights and understanding in management of an investment in a subsidiary, joint venture, and/or cooperation in a company.
In every transaction, there must be a counterparty. For every buyer, it must be paired up with a seller. Being comfortable with a counterparty is essential for a successful transaction. When entering a negotiation, it’s important to know what your objectives are. The key to achieving your objectives is considering what the counterpart wants as well. However, there will always be a risk that one party involved will not fulfil their obligation (sort out spacing!). Certain measures are therefore required prior to engaging with another party, and these companies will need to set a number of required criteria that that is deemed credible for a counterpart.
Given the potential disastrous consequences of not addressing counterparty risk in a proper manner, the costs of drafting documentation and subsequent collateral management are negligible. Companies need to have in place an adequate counterparty risk management.
One factor that determines the success of a company is seeking the most profitable way to finance the business. Equity placement is one of the preferred ways of capital injection as qualifying for an equity placement from an investor could be problematic and time consuming. Therefore, it is crucial to find the right way to present your business to potential investors.
Companies seeking for equity placement will carry out the entire process of the placement, selecting the most suitable investors that match the company’s business and financial plans. This long process involves several phases such as follows : a detailed summary of the company’s business, corporate structure, business plan, financial model, and future business development. All these phases are required to attract potential investors.
Whether small or large, acquiring shares or assets from another company, restructuring or m&as- these types of transactions can be very complex. As the size of the business increases, or the complexity of the transaction increases, the need for a more sophisticated structure also increases.
Transaction structuring involves building out various alternatives, assessing each of the implications, and choosing the structure that offers the greatest benefits that align with the overall objectives. Every structural alternative will carry different consequences and have material impacts onto the overall transaction. Every transaction structure has its pros and cons.
As a company grows bigger, the level of working capital and loans will usually increase subsequently. A company should think about the loans and their structures to best serve itself. Structuring the company’s working capital and investment loan effectively is required in order to increase your funding flexibility and capabilities, to reduce the risks of investing, and to avert possible issues in the future.
As the first step in applying for a loan, the lender would usually produce a term sheet, where the material terms of the deal are negotiated. The abundance and variety of terms might seem overwhelming and seem difficult to understand. A good understanding of the term sheet will help you focus on the things that really matter, so that deals can move faster.
Economic conditions are occasionally fluctuated. A good strategy is the key to a successful fundraising. By having a planned-out strategy, this will help companies to prioritize their projects and needs, enabling them to target their energy and resources more effectively. A fundraising strategy can also be a useful tool in expressing your formulated goals and activities to colleagues and other stakeholders to gain their support and cooperation.
This program will give you in-depth understanding of the financing options available to your company and the skills to design strategies for capital structuring.
Throughout the last 5 years, there has been more than 90 companies in Indonesia that have made their stock trading floor debuts, including the 6 companies going public in the first semester of 2016. On average, about 20 to 30 companies in Indonesia go from private to public ownership status by selling their shares on the stock market each year.
Private companies go public for a number of reasons. Some go in the hopes of attaining large capital gains for future expansions while others just do it for the prestige of having their shares publicly traded.
Private equities, venture capitals, and even the company’s founders, often use an IPO as a convenient way to exit to the public. Shareholders do not need to let go of all their ownership at once, rather they could sell their shares in portions in order to minimize business succession risks. In order to make an IPO successful, there are several things that you need to consider such as the timing, effort, and preparation required.
When a company requires financing, there is another option other than debt or equity. Mezzanine / quasi-equity can be a solution for companies that have a positive cash flow and seek for higher growth through expansions, acquisitions or mergers.
Mezzanine financing is a hybrid between debt and equity. This gives flexibility for the company and lenders and it has its own advantages and disadvantages. Both parties need to define the most suitable structure by determining the company's maximum debt capacity within a deal and to master the mechanics behind the loan agreements.
One factor that determines the success of a company is seeking the most profitable way to finance the business. Equity placements are one of the preferred ways of capital injection as qualifying for an equity placement from an investor could be problematic and time consuming. Therefore, it is crucial to find the right way to present your business to potential investors.
Companies seeking for equity placement will carry out the entire process of the placement, selecting the most suitable investors that match the company's business and financial plans. This long process involves several phases such as follows : a detailed summary of the company's business, corporate structure, business plan, financial model, and future business development. All these phases are required to attract potential investors.