FINANCING ARRANGEMENT
M&A transactions are actions on the asset side of the balance sheet. Allied Inc. also provides services on the liabilities side of the balance sheet, including those listed below.
1. Raising Funds
M&A transactions, other investments, and an increase in operating costs along with earnings growth, all call for additional capital. If the additional capital is not internally supplied, it must be raised from outside sources. Allied Inc. offers services not only for equity finance, bearing characteristics of M&A and its impact on management control rights, but also for debt finance and asset finance. These services can be adjusted and combined to provide flexibility.
2. Financial Restructuring
Capital composition, the ratio of each type of securities that the corporation issued to raise capital, affects the corporate value through the cost of the capital. The objective of financial restructuring is to optimize capital composition, which minimizes capital cost. We analyze of the client’s financial ratio and cash flow in comparison to industry competitors to determine an optimal capital composition that, within a main framework of the ratio of net worth to liabilities, indicates the appropriate proportions of common stock, stocks of other types, subordinated debt, convertible bonds, straight bonds, and borrowing.