Other Services

Trust Financial Collateral to prepare a Feasibility Study Report for your project. Conducting a feasibility study is one of the key activities within the project initiation phase. It aims to analyze and justify the project in terms of technical feasibility, business viability and cost-effectiveness. The study serves as a way to prove the project’s reasonability and justify the need for launch. Once the study is done, a Feasibility Study Report(FSR) should be developed to summarize the activity and state if the particular project is realistic and practical. Let’s find out what FSR means, why it’s important and how to write it.

It aims to identify, explore, and evaluate a project’s solutions to save time and money.  It describes and supports the most feasible solution applicable to the project.

Formally this document is the starting point for running the Pre-Charter Sub-Phase. In practice, it signifies that the sponsor can proceed with deciding on project investment and make necessary assignments to the project manager.  

TECHNO-ECONOMIC VIABILITY

Techno Economic Viability (TEV) Study provides an appraisal of technological parameters of projects and its impact on the financial viability of projects. A TEV study is a risk mitigation exercise undertaken by banks and financial institutions prior to decision taken by a bank or financial institutions on its lending decisions for projects.No project can be absolutely risk less and hence the analysis of the degree of technical risk and associated financial viability, through a Techno-Economic Viability Study (TEVS) is to assist lenders take a view on the acceptability of the degree of risk involved in a project.A TEV study takes into account an analysis of technological risk, market risk, regulatory risk, financial risk. A critical evaluation of these parameters is essential for a meaningful TEV study. Financial Collateral, with the right skill sets to deliver, assists banks and financial institutions perform TEV studies.  

 COMPILING BUSINESS PLAN 

A business plan is a written description of your business’s future, a document that tells what you plan to do and how you plan to do it. 

Business plans are inherently strategic. The following aspects are firmly dealt with:

Market Strategies

Market strategies are the result of a meticulous market analysis 

Competitive Analysis

The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors.

Design & Development Plan

The purpose of the design and development plan is to provide investors with a description of the product’s design, chart its development within the context of production, marketing and the company itself.

Operations & Management Plan

The operations and management plan is designed to describe just how the business functions on a continuing basis. 

Financial Factors

Financial data is always at the back of the business plan, 

Financial Collateral assists clients develop a viable Business Plan which is also bankable. 

We follow a systematic process of developing, operating, maintaining, upgrading, and disposing of assets in the most cost-effective manner. We ensure a coordinated approach to the optimization of costs, risks, service/performance and sustainability. We put investor capital to work in different investments, including stocks, bonds, real estate, master limited partnerships, financial instruments, derivatives trading, bridge loans, hard money loans, and private equity. We work with our client portfolios by considering several variables, including the client’s unique circumstances, risks, and preferences. We also work with investors who believe in a value investing or passive investing approach. We select positions customized for the client’s income needs, tax circumstances, and liquidity expectations. We treat transparency as a key strategic element. Our clients always know where the assets are located, how they are being put to use, and whether there are changes made to them. Consequently, the recovery of assets can be done more efficiently, hence, leading to higher returns. We identify and manage risks that arise from the utilization and ownership of certain assets rather early to help mitigate such risks.

Our Financial Analysts tirelessly research investment options, conduct due diligence on potential opportunities and determine when best to enter and exit assets. Our Economists keep a watchful eye on the current market situation and outlook. Armed with insights from financial analysts and economists, our asset managers have the final say in asset management decisions. They liaise with clients and ensure their best interests are cared for.

Our experts undertake Derivatives Trading on your behalf. Derivatives are financial contracts whose value is derived from underlying assets. Options, along with futures contracts and forward contracts, are some of the most common types of derivatives. The most common underlying assets for derivatives are stocks, bonds, commodities, currencies, interest rates, and market indexes. These assets are commonly purchased through brokerages. Derivatives can trade over-the-counter (OTC) or on an exchange. OTC derivatives constitute a greater proportion of the derivatives market. OTC-traded derivatives, generally have a greater possibility of counterparty risk. Counterparty risk is the danger that one of the parties involved in the transaction might default. These parties trade between two private parties and are unregulated. On the other hand, derivatives that are exchange-traded are standardized and more heavily regulated.

Our experts have studied and then researched the assets they intend to trade in, current market trends, economic data, government policies affecting prices and markets, prevailing investment sentiment, promoter company background as well as their performance track records, etc. in greatest detail possible. They also identify where your risks and your potential gains lie. Our experts have deep knowledge of market history and what one can expect from different types of assets. The best part is that you are always in complete control of your money. Payments are made only against assets acquired by the experts on your behalf. Think of them as an extra set of eyes to keep a lookout for your best interests.We understand the value of your hard earned money. It might be your life savings or the life savings you inherited from someone else. Your assets could easily represent many times your income, which is a lot of money. Do you really want to risk doing it yourself? Or would it be helpful to have access to someone who does this full time and who does this professionally? We make sure we cover your risks. This works almost like an Insurance.

In the investment world, due diligence needs to be performed by companies seeking to make acquisitions, by equity research analysts, by fund managers, broker-dealers, and of course by investors. For individual investors, doing due diligence on a security or asset is voluntary, but recommended. Broker-dealers, however, are legally obligated to conduct due diligence on a security before selling it. This prevents them from being held liable for non-disclosure of pertinent information.

Our Due Diligence (DD) Team members include lawyers, accountants, technical personnel and business advisers. 

A detailed DD guidelines is made available to clients prior actual due diligence is carried out. However, a brief outline is provided below:
The following are carefully reviewed:

1. income statements
2. records of accounts receivable and payable
3. balance sheets and tax returns including business activity statements (last 3-5 years)
4. profit and loss records (last 2-3 years)
   cash deposit and payment records, as reconciled with the accounts
5. utility accounts
6. bank loans and lines or letters of credit
7. minutes of directors’
8. meetings/management meetings
9. audit work paper files (if available)
10. the seller’s claims about their business (e.g. their reasons for seeking investments, the business’s reputation, etc.)
11. privacy details (e.g. of employees, trading partners, customers)
12. stock
13. details about plant, equipment, fixtures, vehicles (are they in good working order and licensed?)
14. intellectual assets of the business (e.g. intellectual property, trademarks, patents)
15. existing contracts with clients/staff
16. partnership agreements
17. lease arrangements
18. details of the business’s automated financial systems
19. details of credit and historical searches related to the business.

When investing in an established business it is vital that investors examine the target business in detail. This due diligence is generally conducted before a binding contract is signed.
Conducting due diligence is the best way for an investor to assess the value of a business and the risks associated with investing in it. Due diligence gives access to important and confidential information about a business, often within a time period specified in a letter of intent.
With this information the investor can assess the business’s financial position and identify risks and ongoing potential. It is the investor’s chance to answer any questions the investor might have about the business. The due diligence process ensures that the investor gets good insight and value of an existing business. Done correctly, it can be the difference between investing in a business that makes or costs money to the investor.The due diligence team generally consists of lawyers, accountants, technical personnel, and business advisers for assessing aspects such as existing management practices, HR, Patents and R&D, market spread, strategic assets, etc. 

Valuations play a significant role in transactions such as Mergers and Acquisitions, Joint Venture Partnerships, Business Combinations, ESOPs and various regulatory requirements. Financial Collateral holds a thorough understanding of the value created in business and how that value is derived from the facts and position of the company. Financial Collateral provides professional, ethical and high quality consultancy in its Valuation Services.We offer the following services to our clients:

Business Valuation Services

Equity and Preference Share Valuation Services

Enterprise Valuation

Derivation of an Exchange Ratio for M&A as well as JV transactions

Valuation required as per accounting standards

Valuation as per the guidelines of Foreign Direct Investments (FDI)

Fairness Opinions  mandated by governing authorities to be issued by Merchant Bankers registered with governing authorities for listed companies

Financial Collateral maintains its neutrality and objectivity while dispensing its valuation responsibilities . Our valuation clientele include Multinational Companies, Listed Companies, Private Companies as well as Banks and Financial Institutions. 

Financial Collateral has a very robust credit syndication practice . We understand the value of funds in executing new projects or running on-going operations. Accordingly, we take it upon ourselves to provide the best services to our clients from the stages of understanding the viability of the project to advising clients on options of funding. We assist our clients in the following:

Critical evaluation of and structuring short, medium and/or long term financial requirements

Assistance in preparing financial plans as well as identification of size and type of funding

Making Presentations to Banks and Financial Institutions to arrange financial closure of long term, medium term or short term debt

Facilitating Working Capital limits from banks and financial institutions in the form of fund and non-fund based facilities

Evaluating  structured financial products such as Loan against property, Loan against shares, Securitization of Receivables, Factoring & Forfeiting etc.

Advising and structuring Infrastructure Term Financing and Project Financing

Arranging lease and Hire Purchase Financing

Placement of Non-Convertible Debentures, Corporate Bonds, Redeemable Preference Shares and Commercial Paper with Investment Institutions, Banks, Mutual Funds, FIIs, Insurance Companies and other investors

Financial Collateral assist early growth and growing companies in arranging equity funds for their business expansion and business needs. We help companies identify the right fund and source the right capital. With strong relationships in place with investors, we are well positioned to assist clients in raising private equity and venture capital resources. Our engagement life cycle would involve us in the following activities:

In-depth study of the company’s business, products and services and financial statements.

Review business plans of the company and advice on the pricing of Equity to be raised.

Identifying Private Equity/Venture Capital Investors who are aligned with the long term objectives of the company.

Initiating strategic discussions with investors (Private Equity Funds, Venture Capital Funds, High Net-Worth Individuals, and Strategic Investors).

Pitching to equity investors and assisting the company in negotiating and finalizing the Term Sheet for their Investment.

Structure the draw-down of the investments and assistance in completing post investment formalities.

Advising the Company/Counsel of the Company on the principle issues in the closure of transaction documents.

Preparation of commercial Terms Sheet and closure of funding.