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Capital Strategy Ltd. (CS)
assists in increasing the equity value of holding companies.
Asset consolidation process inside large industrial-financial groups is gaining more and more strength in the Ukrainian economy. Until recently, owners of industrial assets were seeking the answer for the question “How do we survive with losses?” As the situation changes, another question becomes crucial: "How to provide the growth of the company’s value?"
For Capital Strategy Ltd. the company’s market value is not the main part of our focus or one of the considered factors, but the reflection of success of our efforts. It is the boundary criteria, which allows us to separate the actions that should be pursued from the actions that should not.
Capital Strategy Ltd. offers a unique solution to holding companies, without equals in the local market. Actions performed by Capital Strategy Ltd. to increase a company’s value fully combine strategic planning and investment-banking services.
CS set of actions to increase a company’s value:
The key ways to increase a company’s value imply asset allocation, which reduces assets in businesses not providing the expected return on equity and repositions the assets into more commercially attractive business lines. The scheme (below) for increasing a company’s value is applied by Capital Strategy Ltd. for each separate enterprise in the holding structure.
| Company’s current market value |
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Company’s value after internal improvements |
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Company’s value after external improvements |
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Company’s maximum value |
Opportunities for internal improvements:
strategic and operational |
Opportunities for external improvements:
acquisitions, sales, creation of joint ventures |
Opportunities for financial engineering:
capital structures, leasing schemes, financing with accounts payable, etc. |
Capital Strategy Ltd. also acts as a financial advisor in enterprise sale or purchase transactions. CS’s activities accompanying these deals include: enterprise valuation, due diligence, preparation of Investment Memorandum, as well as conducting road shows.
Investment banking services provided by CS are fulfilled by employees who are either CFA® charterholders or going through the CFA® program, which makes the quality of services offered by the company correspond to global standards.
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* Chartered Financial Analyst (CFA®) program is a globally recognized standard for measuring the integrity and competence of financial analysts.
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