Other advisory services
Real option valuation
Financial engineering
Risk management
Integration planning
Principal Investment
Our financial advisory service line is completed by a set of ancillary activities that leverage our extensive investments in knowledge development.
These ancillary services consist of:
Real option valuation
We assist clients in evaluating assets and/or investments with high uncertainty profiles through the application of sophisticated probability-based valuation methodologies. Depending on the situation, we select the most appropriate technique by trading-off theoretical adequacy against negotiability of the solution.
Financial engineering
We help clients optimize their capital structure in the light of management’s financial/strategic objectives and the debt capital markets’ conditions. For example, we evaluate recapitalization and debt restructuring opportunities, devise specific implementation solutions (e.g., share buy-back programs, leveraged re-caps) and assess current debt capacity.
Risk management
We work closely with our clients across sectors to develop integrated risk management systems that address operating and financial risks. We leverage our investments and achievements in knowledge building to offer state-of-the-art tools for credit risk management.
Integration planning
On integration engagements we help clients secure the full value creation potential of business combinations. This may involve addressing issues of leadership and governance, solving organizational problems, running operational task forces and generally helping clients manage the whole process of integrating the companies into a single new entity.
Many companies fail to exploit fully the value creation opportunities after amalgamating with a partner. This is often a combination of “integration design flaws” (e.g., aiming too low) and/or executional deficiencies (e.g., missing the performance target).
Our tailored CEO–driven approach to integration management is focused on actual value creation and rests on a clear understanding of transaction context, aspirations and insight into key value levers, including opportunities beyond near-term synergies.
Principal Investment
In PI engagements we assist major firms worldwide in facing both internal organizational and strategic issues and typical deal-focused challenges (from scouting to due diligence and transaction execution).
For example, with a PI client we may help lay out their multi-locale expansion (one firm - many locations) and design the governance model - or create the next-generation version. We may also assist them in selecting the strategic approach (e.g. add value vs. manage value or specialist vs. generalist) and "modus operandi" (e.g. skills and process for delivery).
Finally, the combination of strategic insights with world-class transaction expertise, enables us to conduct an on-going dialogue on our clients’ day-to-day deal activities, from portfolio strategy/allocation to detailed execution support.
Recent client work
For a multi-format retailer, we helped redefine the approach to finance strategy and finance-related decision making. Our work ranged from optimization of property ownership to determination of current debt capacity and alignment to optimum capital structure.
For an international, integrated oil company, we assisted in setting out the 1999–2001 financial performance targets and planning a large multi-phase share repurchase program. Our work involved capital structure optimization and the identification of the routes to, and benefits of decapitalization.
For the multi-billion dollar merger between two global pharmaceuticals companies, we assisted in the overall program design, and then supported over 120 integration teams in nine countries. In addition, to capturing the planned cost and revenue synergies, the process was designed to significantly improve the organizational performance of the new company.
Between 1997 and 1999, we carried out 10 engagements helping a UK-based PI firm execute multiple acquisitions in financial institutions, media, metal, and consumer goods.
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See some practical examples of our work
