Capital Structuring
Capital Structuring is an art of finding the optimal balance between debt and equity financing levels. Many small and medium-sized companies believe that being “debt-free” is the best way of doing business. But this rule is not a truth when the company is moving to the next stage of its development. MCG is ready to help you assess all the different options of financing, compare pros and cons of each, and support you in finding the balance which will fit your circumstances and long-term objectives.
We work with clients on:
Assessment of current stage of capital structuring. First, MCG will discuss with the client the long-term objectives of the company. Next, together with the client’s working team, MCG will compare the current capital structure with that of competitors and with best practices. Sensitivity analysis of capital structure composition, coupled with interviews with industry experts, will help us to develop the most suitable and feasible equity-to-debt composition.
Development of concrete action plan to reach the desired stage of capital structuring. When the desirable equity-to-debt composition is agreed upon, MCG will support the client in developing lists of potential debt providers, debt-initiating mediators, drafting debt-supporting presentation materials, and making regret-free moves to increase the Client’s attractiveness among potential debt providers. MCG will also advise on optimal debt conditions and potential alternatives to traditional debt financing forms. Additionally MCG will examine the Client’s equity financing policies and advise on improvement changes (e.g. dividends structure, shareholders rights).