Strategic advice with respect to a client company's positioning within its environment and to the effect of certain decisions on market and investor perception lies at the heart of every decision in a company's life cycle, the ultimate goal being the ongoing optimization of shareholder value. Our approach is holistic and our process dynamic, reflecting the constant changes occurring in the macroeconomic environment, the industry, and the stage at which the company is in its life cycle. We are, throughout this process, committed to proactively identifying the company's value drivers and providing our clients with sound strategic advice and innovative, efficient solutions to meet their needs and to assist them in the achievement of superior returns.
A typical transaction usually involves:
Prior to being accepted, an assignment is screened to determine whether we can provide value-added to the client and our comfort level with respect to successfully closing the transaction.
In addressing these issues, a preliminary evaluation is conducted as
the strength of the sponsor
the depth and breadth of management
industry size, trends, and prospects
the client’s competitive positioning within such industry
the client’s location and the various markets in which it
potential transaction strengths and weakness
Assuming a satisfactory preliminary evaluation, we then consider the
client’s willingness and ability to provide us with the information
necessary to complete thorough due diligence as well as the assignment’s
direct or future revenue-generating potential in making a final decision
as to whether to pursue the assignment.
Financial Due Diligence:
Thorough due diligence is at the core of any assignment, encompassing
due diligence on the industry in which the client operates, the client’s
historical and prospective financial performance, its operations,
We work closely with the client to facilitate the process of obtaining
the information required to complete such due diligence, including,
where necessary, assisting the client in securing a reliable and credible
market study. We then, in cooperation with the client, analyze the
information and translate this analysis into a reliable assessment
of the client’s prospects going forward. This feasibility assessment
involves the development, with the client’s management, of detailed
financial projections which are then used as the basis for valuing
an entity, evaluating its debt capacity and, if applicable, structuring
the requisite transaction.
The structuring process involves financial, organizational, and legal
The basis of this process is the evaluation of the various risks to
the client and the proposed transaction, and identification of appropriate
risk management measures to be structured, where possible, into the
- Regulatory, Fiscal, & Legal
- Construction (Time & Cost)
- Operational & Management
- Financial (Interest Rates, Leverage)
The objective of the financial structuring process is to optimize the
transaction's structure so as to optimize the value to the client and
to provide prospective investors and lenders with products that meets
their risk/return requirements.
From the organizational and legal perspective, ProFinance works with
leading legal advisors and fiscal experts to complete legal due diligence
and optimize the fiscal and legal aspects of the entity’s and
transaction’s structure so as to minimize the risks to the various
parties associated with the transaction.
Transaction Execution involves the full range of activities involved
in finalizing an equity or debt transaction, including:
Preparing offering documentation
Identifying and selecting investors/lenders
Negotiating with investors/lenders and addressing their concerns
Directing the legal documentation and funding process
Establishing the funding mechanism and overseeing the funding process
ProFinance works closely with the client throughout this process to assist the client in evaluating various offers, in addressing the concerns voiced by investors or lenders, and in restructuring the transaction, where necessary, to successfully close the transaction. Our independence allows us to shop for the best deal on behalf of our clients.
manage the legal documentation process to ensure that the legal documentation
appropriately reflects the business issues agreed to between the relevant
parties and provides the client as well as investors and lenders with
the necessary safeguards.
The objective of the transaction execution phase is to assist the client in securing the necessary financing at the lowest cost possible, while providing investors and lenders with a well-structured
product whose risks are clearly identified and whose returns are commensurate
with such risks.
Our involvement with a client rarely ends upon the closing of a transaction.
Whether on a formal or informal basis, we continue to monitor the
post-transaction performance of the entity. This enables us to assess
the reliability of our financial projections and to keep up to date
with our knowledge of the sector.
When formalized, our involvement may extend to providing financial management oversight on behalf of investors or lenders, strategic advisory services, financial advisory/restructuring services, or a combination of these.