At Kanvic our corporate finance experts work with clients to evaluate investment opportunities and identify means of finance to ultimately maximise the value and sustainability of their business.
We believe that successful financial decisions are rooted in critical inputs from the field of strategy. Risks and rewards only reveal themselves fully when they are identified strategically and measured financially.
Decisions relating to corporate finance must always seek a balance between risks and returns and take into consideration the potential impact of changes in the macroeconomic environment along with the context of the client, as well as a careful consideration of all the available alternatives.
Any financing decision - whether it relates to the type of investment to be made, the debt equity mix, or the source of funds - needs to be aligned with a firm’s phase of growth and its specific requirements.
In corporate finance the temptation of short-term gains must always be placed subsidiary to the long-term sustainability of the business.
While the pursuit of profit is often the overriding objective of a business, a failure to equally focus on the firm’s cash flow can quickly jeopardise its viability.
Managing investor expectations
Private Equity has emerged as an expanding source of financing for Indian businesses but successes for both sides have remained elusive. This is often the result of mismatches in goals and expectations and unrealistic assumptions relating to business valuations and exit strategies.
Aligning acquisitions with strategy
Indian companies have used acquisitions to accelerate their growth process or fulfil their international ambitions. However, when acquisitions have not been aligned with the corporate and growth strategy, companies can buy the wrong businesses, overpay or miss opportunities to apply their parenting advantage.
Optimising the cost of capital
Businesses face a high cost of capital in India and as returns come under pressure in the current economic scenario, they need to optimise their cost of capital.
Identifying the right partners
International companies seeking to enter India have found joint ventures to be an effective starting point. Yet without the right expectations and knowledge of the Indian market, these joint ventures can fail to deliver the expected benefits for either partner.
Making exit decisions
While large companies sell their non-core businesses as part of their corporate strategy, family owned companies often face a situation where the next generation doesn’t want to take the business forward. These cases necessitate the owner’s exit, but slow decision-making and a lack of understanding of the sale process often destroy hard earned value.
We integrate finance with strategy
Our approach to corporate finance is rooted in strategy. Through deep understanding of an industry’s economics and the competition, we develop a clear and fact based picture of what drives value in a business.
We model different scenarios
Our methodology and deep subject matter expertise enable us to stress test assumptions on revenues, costs and investments and to develop a granular understanding of the risks under various scenarios. As a result, we are better able to assess the value of a business and create an unparalleled advantage for our clients in transactions.
We take a long-term outlook
We always maintain a long-term perspective, whether supporting our clients in pursuing new opportunities or in getting their business back on a stable footing. This way we help them continually steer their business in the right direction whatever the prevailing winds.