Raising financing and asset protection

Raising financing makes it possible to accelerate business growth, finance assets and carry out projects larger than current own capital. A bank loan, bonds, direct investment, venture capital and the public market can be combined depending on the purpose and period of the project. Professional preparation of an income and expense calculation and memorandum helps compare offers on one basis and obtain better terms.

Financing is raised in the form most suitable for your business. If you have not yet decided on the source of financing, we can advise which of the available sources is most suitable for your business.

As a rule, work starts with analysis of the company’s plan, financial position, asset and debt portfolio, financing goals, success factors and investment attractiveness of the business for different types of investors. Based on the analysis, we recommend one or several of the most suitable financing schemes and determine the procedure for raising capital.

We consider the following possible sources of financing:

• Bank loans, including loans provided under project-finance principles;
• Bond loans and asset securitisation;
• Public offering of shares (IPO);
• Funds from private equity funds and venture funds;
• Investor funds;
• Other sources

After the financing scheme is determined, we prepare a document package for potential investors and/or lenders. The package includes:

• Analysis of the efficiency of the investment project;
• Development of the marketing, financial and organisational plans of the project;
• Identification of the main project risks and development of ways to minimise them;
• Preparation of a business plan, feasibility study, information or investment memorandum, promotional prospectus, issue prospectus and other required documents;
• Development of security schemes for obligations to banks and investors

After that, we support the search for and raising of investors and lenders for the project on a tender basis and, where necessary, arrange more complex financing schemes, such as raising financial resources through asset securitisation, Eurobond issues, creation of asset management companies and so on.

Our advantages

The main advantages of TAXC LIMITED financing support are:

• Independence and objectivity. We are not tied to one form of financing, so we consider the full range of possible financing sources and options and determine the terms for the client’s task.
• Our team. TAXC LIMITED specialists have extensive experience in financing projects. Some previously worked in leading Ukrainian and Western banks and investment funds and understand their requirements well. In our work, we proceed from the principle that the main task is not simply to raise debt or equity capital, but to optimise financing terms for the client and ultimately increase the value of the business. For this purpose, we increase the investment attractiveness of the business for the selected type of investor, develop measures to increase capitalisation and/or reduce borrowing costs, and prepare good-quality business plans and feasibility studies, which helps achieve better results.
• TAXC LIMITED also has significant international experience and contacts. When necessary, we involve specialists from corporate-finance teams in TAXC LIMITED’s foreign offices who have experience with complex international financing transactions and contacts with a broad range of potential investors and bankers.

Work on raising financing includes the following tasks:

1. Identification of potential investors / lenders

This is the logical starting point for raising financing. It is necessary to know the participants in the financial market. Just as there are good and bad doctors, financial institutions have better and worse histories of financing companies. Based on our experience, we organise a search for genuinely serious potential investors and lenders.

2. Preparation of a Financial Memorandum

This is very important for raising financing. Our experience shows that financing directly depends on the care and responsibility used in preparing the Financial Memorandum. A Financial Memorandum differs from a memorandum prepared for the sale of a company because, for a financial investor or lender, repayment of funds and financial return are more important than the long-term aspects that matter to a buyer of the whole business.

Main advantages of a professionally prepared Financial Memorandum:

Presentation of the client to a larger number of potential investors; saving time — instead of repeatedly preparing information for each new potential investor or lender, it is enough to prepare one financial document; the ability of a financial institution to respond more quickly, because financial institutions are more willing to consider projects for which preliminary work has already been completed.

3. Analysis of financial and business activity

This is mainly the responsibility of the potential investor or lender rather than the client, although, as noted above, a professionally prepared Memorandum can help them perform the assessment. Our specialists have, on average, more than 7 years of experience and understand all aspects of company acquisitions and sales, restructuring, project financing, pricing, financial forecasts, valuation and analysis of financial and business activity.

4. Determination of the financing plan

Nobody knows your business better than you do. Our specialists will work together with you to develop an effective financing plan.

5. Meetings and contacts with suitable lenders and/or investors

These are very important for raising financing because it is essential to find an investor or lender that can genuinely meet the company’s financial needs. Lenders may include local, regional and state banks, financial groups, leasing companies and private individuals. Direct investors are also divided into private investors, investment companies and venture funds. When choosing an investor or lender, it is necessary to take into account the sector in which the company operates and the amount of expected financing.