Due Diligence services are mostly required to investigate the business and financial position of a potential partner in purported shareholding acquisition, provision of debt financing, or establishment of a JV.  Within a Due Diligence project we gather, process and analyze commercial, financial, legal and organizational information relating to the target company.

The findings of the Due Diligence investigation are presented in a report containing summary analysis of the company’s operations and major contracts and detailed analysis of its financial reporting statements, as well as analysis of key risk factors identified in respect of company’s financial position and its business and corporate structure.

The goal of Due Diligence may also become the study of specific issues, such as analysis of business processes, tax exposure, or market strategy of the company.  Such issues may also be covered under the extended scope of work on client’s request. Due Diligence findings usually serve as a basis for developing target company’s financial model, its business valuation and deal structuring.

The primary goal of a Family Office is to preserve and grow the capital for high net worth individuals.  This goal is achieved through setting the investment strategy, structuring of investment assets, selection of favorable jurisdictions and tax planning.

Coordination of efforts of various financial and legal advisers is the essential part of our engagement aiming for efficient asset management. Below are listed some of the issues that a Family Office deals with on a regular basis:
 

1. planning and structuring of the holdings, selection of jurisdiction;
2. tax planning for cross-border transactions;
3. selection of optimal financing and cash flow structures;
4. interaction with investment bank brokers, asset managers and analysts as well as with directors of portfolio companies to execute contemplated transactions;
5. risk management – timely identification and mitigation of market and regulatory risks.
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Within the scope of Family Office services we advise our clients on their investment strategy, portfolio allocation and exit triggers with regard to both marketable securities and direct privately-held business/start-up investments.

Development of financial strategy includes development of the financial model of the company based on its budget and strategic plans.  Within the framework of financial strategy development we help our clients make the right choice of financial instruments to achieve the strategic goals set, based on our professional experience and network of contacts in financial community.

Decision on selecting the financial instruments depends on the situation on the global financial markets, investment horizon and also on the rates of growth and profitability of the company’s business.  In each particular case we recommend to our client a unique set of financial instruments that best correspond to strategic goals and opportunities.

Stride Consulting offers to its clients the most efficient solutions for attracting various types of corporate financing: direct private equity investment, procuring loan financing and public placement of equity or debt financial instruments.

 

Search for and negotiation of the most favorable terms of financing constitute important elements in implementation of the financial strategy aiming either at business expansion or restructuring of existing liabilities.  There exist a number of options for raising financing by a business entity, including:
 

1. direct equity investment, sale of a shareholding in the company;
2. establishment of a joint venture, where participants contribute their various assets into the joint business;
3. project financing, where a new separate entity is set up with capital funding provided through equity contributions by shareholders and through loan financing secured upfront from banking or other financial institutions;
4. bank loan financing secured through collaterals on assets or revenue streams;
5. mezzanine financing, where financing is arranged in the form of a convertible loan, where the lender has an option to convert those debt obligations into an equity stake in the company.
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The forms of sourcing the financing may be either public (whereby the investment offer is made to all qualified investors) or closed (whereby the list of potential investors is limited).  The approach and the form of financing are determined by market conditions, industry particulars and investor tolerance with regard to risks and openness to information disclosure.

Stride Consulting assists its clients as an advisory in attracting financing, in selecting the best financial instrument, as well as in conducting negotiations with investors and lenders.

Business growth oftentimes brings about diversification of the lines of business, establishment of new legal entities and expansion of the number of partners, clients and personnel.  All such developments lead to deviations from the originally set goals, plans, forecasts and corporate structures unbalancing the system of management and decision-making.

Stride Consulting helps its clients to choose optimal corporate structure, develop an action plan for transition from the existing to target ownership structure and supports the implementation of the developed restructuring plan.

The goals of restructuring corporate or private ownership structure may vary, including:
 

1. preparation of the company компании for new equity financing or entering into joint-venture agreements;
2. optimization of terms of debt financing from commercial banks or investment funds;
3. compliance with new rules and requirements of tax or corporate regulations;
4. changes in market conditions and macroeconomic risk factors.

Development of restructuring plans is greatly dependent on client’s strategic objectives, its market risk tolerance and timeframe for resolution of identified issues.