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Capital Strategy Ltd. (CS) is specializing in new ventures.
In an ever increasingly competitive environment it is becoming more and more difficult to occupy a market niche, especially for a start-up business.
Capital Strategy Ltd.’s strong position in the segment of new ventures is supported by the achieved results. Combining the experience of CS partners’ before and after the company foundation, CS has accomplished such new ventures Isida Hospital, Business Credit, Ukrainian agro-leasing company, A.K. Engineering
, Bio Medinvest, IP Net, Diplomat Hall, etc.
The complex approach developed by Capital Strategy Ltd. combines a set of stage-by-stage steps in strategy development for projects and subsequent attraction of equity or credit capital.
When working on strategy development for a project, CS practices fundamental business approaches adapted for the realities of the Ukrainian market. These approaches produce a clear and objective picture of economic attractiveness of the future project.
To minimize risks, associated with the development of project strategy, CS divides the task into 2 stages:
| Stage 1 – Feasibility study or development of the project concept: |
| Examples of activities performed during this stage: |
| conducting a number of expert interviews* with potential buyers, suppliers, and competitors |
| analysis of local and foreign markets, based on information obtained from secondary sources (including the study of competitive environment) |
| defining market niches and their attractiveness within the framework of proposed project |
| performing preliminary financial analysis |
| defining major risks of the project and possible ways to minimize them |
| These actions allow an investor to obtain an objective and reasoned conclusion as to the general economic attractiveness of the project. In cases of a positive conclusion at the end of the first stage, Capital Strategy Ltd. moves on to the second stage of strategic planning. |
| Stage 2 – Development of marketing and financial strategies of the project: |
| Examples of activities performed in the framework of developing marketing strategy: |
| studying target audience of the project* (conducting in-depth interviews, focus-groups, etc.) |
| positioning new product or service in the market |
| developing unique market offer in the framework of product, price, distribution, and promotion (including brand development) |
| These activities are directed towards creating a unique market offer, providing sales level high enough to achieve the expected return on invested capital, and having all the prerequisites to provide future sales. |
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| Activities performed in the framework of developing financial strategy: |
| defining project costs |
| defining possible alternatives for the project financing structure |
| performing financial forecasting (income statement, balance, and cash flow statement) for major alternative capital structures |
| developing situational scenarios for major alternative capital structures |
| defining optimal capital structure |
| performing preliminary tax planning |
| These activities are aimed towards achieving a strong financial condition and maximizing the future company’s value. |
| Additional services: |
| If project initiators have a need in attracting additional financial resources, CS will provide a number of investment-banking services and attract additional equity or credit capital. Capital Strategy Ltd. will perform business valuation, deal structuring, prepare Investment Memorandum or perform evaluation of the project’s long-term creditworthiness, find potential investors and carry out negotiations with them. |
Currently, Capital Strategy Ltd. is the only company providing such a set of professional services for initiators of new ventures in Ukraine.
* Depending on the specifics of the project, Capital Strategy Ltd. applies various marketing technologies: expert interviews, in-depth interviews, focus-groups, phone surveys, etc.
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