Attracting capital

In order to attract capital from investors and banks, companies must meet several criteria: transparency of business, quality and objective financial reporting, established system of corporate management.

Owners of companies must compare the costs of reforming their business for receiving more qualitative access to equity and debt capital market with economic benefits arising from further development of company due to attracting of additional capital.     

Financing of transactions

The companies don`t always have enough own funds to finance mergers and acquisitions. Besides, the cost of debt financing is usually lower than the cost of equity. As a result, in order to increase of return on invested capital, companies attract banks to partially finance these operations.

Specialists of «V&A Financial Solutions» help to structure the following transactions on financing of M&A deals:

  • Management Buy-Out (MBO) – management buyout of companies using borrowed funds.  

  • Leverage Buy-Out (LBO) – investors’ acquisition of companies using borrowed funds.    

  • Bridge Financing (BF) – short-term loan to be repaid with future proceeds from the placement of company`s shares.  

Within transactions of MBO/LBO/BF «V&A Financial Solutions» provides the following services to its clients:

  • preliminary analysis of financial results of the company that is planned to be purchased;

  • preparation of  financial business models;

  • structuring of transactions;

  • participation in drafting and approval of main contracts.

Debt financing

Debt financing is the most common form of business financing available to companies. Local companies have the opportunity to attract debt from commercial banks or by issuing its own bonds. Bank lending, unlike bonds, requires fulfillment of additional conditions, namely: providing bank with collateral, transferring to the bank turnovers on the current accounts of the company, following with some financial covenants.   

«V&A Financial Solutions» has considerable experience in corporate finance and has close partnerships with commercial banks. Specialists of the company will hold preliminary negotiations with potential bank-lenders, analyze their terms and conditions and propose to the client the most advantageous offer. The company «V&A Financial Solutions» is ready to act as consultant in arrangement of issue bonds in partnership with leading investment banks.

Funding from partial placement of shares / parts of equity in companies

This form of financing provides an additional issue of shares / parts of equity in the companies by closed subscription to one or more financial investors. This form of financing are actively used by growing companies for whom access to bank financing is limited by the conditions of banks as to: turnover by accounts, collateral, liquidity and other financial indicators. Usually, the funds received from such placement are used for further development of the company. 

Within attracting funding from partial placement of shares, «V&A Financial Solutions» provides the following services to its clients:

  • preparation of documentation for the tender among investors (including preparation of the information memorandum, presentations, etc.);

  • organization of meetings with potential investors (a road show);

  • analysis of proposals from  potential  investors, preparation of a term sheet and exclusivity agreements with potential investor;

  • organization of legal and financial expertise (due diligence); 

  • negotiation of the terms and conditions, including the size of investment and the structure of the transaction;

  • organization of settlements between the parties, closing of the transaction.