& Capital Advisory
Fund raising with truly independent expertise.
Advise on the
strategy through the
The professionalism and independence of MP are key assumptions to perform this kind of engagements, in order to issue robust recommendations free of conflict of interest.
The MP Financial Advisory team advises our clients in the most appropriate funding structure, according to its current financial situation and to its future strategy, in order to maximize shareholders’ value.
The main goal is to assess the current capital structure on a Company / Group as a whole or by a project-by-project analysis, and to propose the lowest combined cost of capital in connection with the key risk and maturity assumptions disclosed.
The MP Financial Advisory Team aims to support our clients in new debt or recap engagements through a comprehensive and competitive process, namely by pursuing the following task blocks:
- Planning stage: i) Understand the business strategy and its main value drivers, as well as its credit strength; ii) Detailed review of the company’s financial information; iii) Scope definition of due diligence work to be carried out (if applicable); iv) Pre-selection of financial institutions (e.g. for senior debt and mezzanine debt) to be contacted, taking into account their profile and experience with the type of operation proposed.
- Analysis stage: i) Analysis of assets and liabilities, to identify assets that may be likely to create additional value to the company; ii) Analysis of the main financial ratios and the current financial situation; iii) Review of the main terms and conditions of the company’s current funding sources; iv) Preparation, analysis and review of the company’s forecast financial statements, as well as evaluation of estimated cash flows released by the company; v) Conducting sensitivity analysis and determining their impact on financing; vi) Determination of the financing amount and the financing structure, both in terms of senior debt and in terms of subordinated debt; vii) Analysis of the various financing alternatives; viii) Selection of the ideal financing alternative; ix) Preparation of indicative and preliminary term sheet containing the main terms and conditions of the financing.
- Engage banks & other financing entities: i) Contact with the selected financial entities to assess their appetite over the operation; iii) Preparation of preliminary teaser about the operation for sending to financial institutions; iii) Selection of independent entities to carry out the due diligence process; iv) Beginning of the drafting of an Information Memorandum on the operation.
- Negotiation stage: i) Beginning of the due diligence process; ii) Closing the Information Memorandum of the proposed operation, feeding in the draft term sheet; iii) Presentation of the operation to the selected financial institutions; iv) Provision to the financial institutions of the 1st draft of due diligence reports, and clarifications about the proposed transaction; v) Reception and comparative analysis of offers made by the contacted financial institutions; vi) Term sheet negotiation and closing; vii) Selection of financial institutions (if a club deal solution is chosen).
- Closing stage: i) Drafting and review of facility documentation; ii) Organize and attend, as the Company’s advisers, as many meetings (with insurers, banks, lawyers, etc.) as may be required in the negotiation process; iii) Advise on the economic and financial aspects related to the preparation and discussion of the agreements and documents required to close the Transaction; iv) Sign-off / Financial closing.
Get the proper
according each risk
/ return profile
Independent advisory services in obtaining capital
An analysis of the purpose for which the funds are to be used, the amount involved and duration of the needs determines the financing conditions:
- Opening capital to an outside investor
- Capital increase restricted to the current shareholders
- Leverage the assets with significant cash flow potential or not relating to the core business
- Public offering
Our professionals have significant experience in providing advisory services for this kind of decision, supporting clients in all phases of the process, from comparative evaluation of the various financing options, structuring of the transaction and impact on the company’s operations, to coordination of the negotiation process and effective completion of the transaction.