Independent capital structure advisory without any influence from product teams or investment bankers. Fixed fee based advisory services focussing on the following topics:
- Cash stress testing (do I have a large enough cash buffer for a stress event?)
- Asset portfolio optimisation (how does an acquisition target affect portfolio diversification?)
- Optimal capital structure (what is the optimal amount of debt for me?)
- Debt portfolio optimisation (what term structure and mix of debt funding sources should I have?)
- Risk management (what does my rates, fx, commodities and inflation risk collectively look like?)
Advice from investment banks can often be biased despite best intentions due to:
- League table politics (“our objective is to be top 5 in convertibles but we are 8th therefore we have to pitch this product”)
- One trick ponyism (“we are strong in bond markets therefore will keep encouraging leverage”)
- Margins (“Hybrids are a higher margin product than convertibles, therefore we pitch hybrids”)
- RWA limitations (“Revolving credit facilities are expensive to our balance sheet therefore we will not discuss working capital”)
I focus on seeking the best solution based upon data available and treat analysis as a scientific process and consider each project a series of experiments to arrive at a state of truthfulness:
- If the peer group average is X, how does the size of the peer group affect uncertainty in the average? What is the confidence interval
- Do we have sufficient data to come to a conclusion?
- Are alternative scenarios fair comparisons? Is the do nothing case included (may often be the best solution)?
- What are we maximising and/or minimising? Are the success factors defined effectively?
Performed more than 100 capital structure reviews per year for the best part of a decade at a bulge bracket for the largest corporations across the following countries:
- Europe: UK, Germany, France, Italy, Netherlands, Spain, Portugal, Iceland, Norway, Sweden, Denmark, Finland, Greece, Switzerland, Belgium & Austria
- Rest of the World: US, South Africa, Nigeria, Dubai, UAE and China
The includes advisory services across the following industries:
- Aerospace, Agriculture, Chemicals, Construction, Defense, Education, Energy, Financial Services, Food, Healthcare, Hospitality, Manufacturing, Media, Mining, Pharmaceuticals, Telecommunications, Transport, Technology & Utilities