Transaction Advisory Services are third-party financial services which are normally provided by professional or investment banking firms. Transactions are significant events in the life of the business both for buyers and sellers. Transactions or deals are brought to a successful conclusion by a team of dedicated specialists. These services bring transactions to a successful conclusion from the start to the finish. They are the business support system providing funding whether for working capital needs or long-term funding. These services cover a whole gamut of services from IPOs and private placements, mergers, and acquisitions. They carry out the critical work of analysis and strategic capital structure decisions.
Value Addition provided by Transaction Advisory services
These services provide expert financial counsel for various financial structuring activities and related decisions. Some of the activities include the following:-
● Make businesses exit ready:
If the management or promoters of a business wanted to make an offer for sale, these services get involved 12-18 months before the sale/disposal of the financial stake; they streamline the various aspects of the operation so that the business commands attractive multiples on the exit.
● Assisting the Sellers:
They help to explain all areas of business and smooth any perceived conflicts that the prospective purchasers might feel to facilitate the successful conclusion of the sale
● Financial Analysis and proactive guidance:
In the case of Mergers and Acquisitions, these services provide financial analysis and proactive guidance throughout the process. The experience and deep insights provided by the transaction advisory arm will take the M&A process to the next level and provide realistic and rational evaluations of the business. The resultant impact will be that the business will emerge stronger than ever before.
● Bidding support:
Throughout the deal execution process, these services can provide bidding support. Various pre-bidding activities like target screening, buy-side and sell-side due diligence, accounting and transaction readiness are all carried out.
● Business integration and separation:
The various departments and business centres are thoroughly scrutinised to ensure that vestigial activities or duplicated activities are ruthlessly cut out so the remaining entity becomes an efficient organisation.
● Financial Modelling:
The investment banking firms in India also provide financial modelling of the business.. All types of activities, including mergers and acquisitions, litigation and disputes, bankruptcy to , financial reporting, and strategic planning and due diligence and compliance, are all undertaken by the corporate strategy advisory services.
● Due diligence of various kinds (Legal, Financial, Commercial and Operational, IT)
❖ Legal Due diligence:
Thorough perusal of all contracts underlying the deal are perused by the legal experts under this umbrella to ensure that all details of the contracts entered into by the buyer and seller are accurate
- Financial Due Diligence:
This refers to the thorough vetting of all investment decisions. All types of thorough scrutiny of the business are required by you as the purchaser and suitable to the sellers.
❖ Commercial Due Diligence:
Best investment opportunities are scoured out by the process of conducting primary and secondary research, combined with quantitative analysis. All key parameters which impact value are analysed in this vetting process.
❖ Operational and IT due diligence:
Specialist operational and IT advice is provided to all categories of organisations irrespective of the sector they belong to.
● Optimization of tax liability:
The tax liability is optimised during Mergers and Acquisitions and exit transactions through re-distribution across various departments of the organisation.
Pantomath Advisory Services provides a whole gamut of the services outlined above under its umbrella. The Pantomath Group provides services to over 5000 corporates in India, spread across 30 industries. Visit Pantomath Group for all your investment banking and transaction structuring needs.
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