Corporate Finance
How We Help Clients?
The most fundamental question facing anyone trying to make decisions in any organization: What is the objective of our business? Unless we know what our objective exactly is we cannot make sensible financial decisions for our company.
There are certain business and operational targets such as having market share, growth, and profitability.
While many companies prioritize profit maximization, the maximization of returns to shareholders in the long term is a superior goal. However, the ultimate target for every business is to create a ”value”.
The Street Finance can partner with clients to manage creation and measurement of shareholder value, type of finances to raise and to manage the risks which are in the heart of our corporate finance services.
We have technical knowledge and experience to help clients all the way to success. The Street Finance is a boutique Corporate Finance house with a strong international experience. We provide creative solutions that can add value to clients’ business and close their deals, raise funds from capital markets.
Capabilities
A firm can choose from an infinitely long list of possible objectives. Some of them will appear noble and easily justified, while others not. Some of the most known objectives are increasing the market share, growth, maximization of profit and maximization of long-term shareholder value.
Sound financial management is necessary for the survival of a firm and for its growth. Therefore all stakeholders, to some extent, have an interest in sensible financial decisions being taken.
The Key Questions Are
What is shareholder value?
What is shareholder wealth-maximization?
What happens if control over directors is weak?
How We Help Clients
We can work with shareholders and board to determine managers' objectives aligned with the shareholders' interest and link rewards to the shareholder wealth improvements.
Do you have adequate corporate governance in-place to protect shareholders' interest?
Obtaining the most appropriate mixture of finance is likely to be a great importance to many firms.
The Key Questions Are
Whether should your firm borrow more through short-term types of finance or long-term?
Should you increase the proportion of long-term finance (debt plus equity) until it matches the value off all firm assets? Or only to the point, where long-term finance covers the long term assets and the short term finance is used for the purchase of short term assets?
Whether should you borrow only in your functional currency or in a variety of currencies?
Should you match the currencies in which the firm's assets and sources of revenue originate?
Whether are fixed-rate interest rates more appropriate than the interest rates which go-up and down with a benchmark rate, such as LIBOR?
Finally, what is an appropriate level of borrowing relative to the equity capital for your business?
How We Help Clients
We can provide objective advice to help you raise or retain debt on the most advantageous terms by introducing you to the potential lenders in the marketplace.
We help our clients with access to the extensive sources of liquidity tailored to their needs.
To "go public" and become a ''listed company'' is a major step for a firm. The substantial amount of funding from initial public offering can lead to a new, accelerated phase of business growth. Quotation is not a step to be taken quickly; it is a major legal undertaking. The regulation authorities such as US Securities and Exchange Commission ("SEC"), Turkish Capital Market Boards ("CMB") impose a set of demanding rules and the directors will be put under the pressure on new and greater responsibilities.
Initial Public Offering ("IPO") can produce a greater availability of equity finance to fund expansion and new strategies. It may also allow existing shareholders to realize a proportion of their investments. They may want to sell additional holdings in stock exchange market, very quickly. Shareholders may simply want to know the value of their holdings, even if they have no intention of selling at present.
The Key Questions Are
What do managers need to consider?
What are conditions and new responsibilities?
Do you consider making an international IPO involving 144 A exemption in Istanbul Stock Exchange? perhaps you prefer a direct listing in abroad stock exchanges such as New York Stock Exchange (NYSE), London Stock Exchange (FTSE), Berlin Stock Exchange (DAX), Vienna Stock Exchange (VIE)...
How We Help Clients
We can help you throughout the issuing process which involves a number of specialist advisors such as a sponsor who may be a merchant bank, investment bank or stockbroker, and sub-underwriters, brokers, registrar, solicitors, lawyers.
We can help you choosing the right method of issuing your stocks. There are various methods, ranging from a full-scale offer for sale to relatively simple introduction. The final choice often rests on the costs of the method of issue. These are named as offer for sale, offer for subscription, placing or intermediaries (''SPAC''s).
Green bond issuance has grown substantially, since the first green bonds were issued in 2008.
Investors seek opportunities to fund environmental and climate-related projects.
Our ambition is to increase Turkish companies access to the global sustainable bonds market by helping them to advance organizations looking to take on green, social and sustainable initiatives.
The Key Questions Are
What is your adherence to sustainability standards?
What do you need to make efficient sustainable bond reporting?
What do investors expect to see in your reports?
Have you clearly identified the particular green, social or sustainability standards (the “Standards”) with which it purports to comply? Examples of such standards include, but are not limited to, the Green Bond Principles and the Climate Bonds Initiative Standards.
What is your intention to allocate bond proceeds in accordance with the applicable Standards (“The Framework”)?
What are your company 2030 targets that fit into United Nations Sustainable Development Goals (''SDG''s) principles?
Do you know the latest version of the voluntary guidelines of The International Capital Market Association (''ICMA''s) Green Bond Principles (“GBP”) – edited in June 2021?
Do you need a second party opinion on the sustainability credentials and management of the Green Bonds1 to be issued by the European Commission in compliance with the NextGenerationEU Green Bond Framework created to govern their issuance?
How We Help Clients
We can help clients to understand the sustainability impact of their business processes and planned use of
proceeds, as well as management of proceeds and reporting aspects of the Framework.
We can help to determine the eligible categories and their alignment with those recognized by the GBP and Green Loan Principles(''GLP'').
We help clients to assess The Framework’s alignment with the Green Bond Principles 2021 as administered by ICMA, and the
GLP 2021, as administered by LMA, APLMA and LSTA6.
We help clients to establish a system to track and report impacts of the use of proceeds and the alignment of their sustainability strategy and performance and sustainability risk management in relation to the use of proceeds.
Mergers and Acquisitions (''M&A'') is an important enabler of strategy and long-term value. It can be hard to ensure you’re buying the right business for your company’s strategy. You also need to do it at a price that gives you enough flexibility to achieve your goals, expanding into a new region or a new sector, or to improve your in-house capabilities.
The Key Questions Are
Why do you invest in this company?
What is the quality of the earnings?
Are Company's plans and projections achievable?
Are there any matters requiring further due diligence investigation?
What is your exit opportunity, ease and timing?
How We Help Clients
We help clients determine which sectors and functions offer the most potential, based on deep understanding of industry value chains and the underlying economics.
Whether you need help financing your next acquisition, managing the process, reviewing what you already have, or preparing for sale; our experience ensures the process runs smoothly.
Successful M&A programs require precision to find the best targets at the best valuation. We can help you access to the new markets and assets.
We can help you to carve out of your businesses by disposing of under-performing assets / parts of the business.
Mergers and Acquisitions typically involve a substantial amount of due diligence activities such as Financial Matters, Property, Intellectual Property, Customers, Material Contracts, Human Resources Issues, Litigation, Antitrust and Regulatory Issues, Corporate, Environmental Issues and Competitive Landscape.
Recent crisis has changed in market conditions and currency fluctuations can lead companies into serious financial and operational distress. In many cases, there will be solutions to prevent the deterioration in financials and improve value chain.
The Key Questions Are
How should the ownership of the company be structured?
How long does the restructuring take?
What consents are necessary for the corporate restructuring?
Which of the business' companies should be included in a post-restructuring group?
How We Help Clients
The Street Finance provides advisory services to lenders, creditors, and companies in troubled financial situations to help identify problems, develop solutions and implement them with ease and precision. For companies, their lenders, shareholders or other stakeholders in businesses facing financial under-performance or crisis, we deliver restructuring options for recovery and tailor-made solutions for your individual needs.
We develop solutions both for creditors and debtors.
We can provide working capital management, debt financing, and business turnaround services.
Our integrated due diligence capabilities, including financial, operational due diligence. We involve senior specialists from the beginning of the project and work closely follow-up the potential issues.
The Key Questions Are
Are the company’s projections for the future and underlying assumptions reasonable and believable?
What normalized working capital will be necessary to continue running the business?
What is the condition of assets and liens thereon?
Has EBITDA been appropriately calculated?
What registered and common law trademarks and service marks does the company have?
What customer concentration issues / risks are there?
What agreements, contracts, guaranties, loans, and credit agreements does the company have?
Are there any tax and litigation issues?
Financial Due Diligence - Sell Side
We can support you through focusing both on your expectations, key issues and risks of your business.
Many shareholders miss the potential highest possible price due to lack of preparation stage.
We attend to the management presentations, assist in negotiation strategy and share purchase agreement drafting.
We review the data room information and support the preparation.
Financial Due Diligence - Buy Side
We have expertise in the local market, are knowledgeable about the issues specific to Turkish business environment and differences in the local accounting GAAP and IFRS, US GAAP having an impact on the historical reported financial performance. Therefore, we set a scope accordingly and take a business-driven approach during our analysis, which are structured around value drivers to represent risks / weaknesses as well as opportunities / strengths.
Our approach is to understand the business first and then to examine the accounts. This helps to ensure that we identify commercial issues as well as more financial issues. We focus on major deal issues to maximize the buyer’s return on the deal going forward.
Operational due diligence
We understand your needs and use our experience to collaboratively develop solutions that generate results. The Street Finance usually involves a comprehensive review of the full range of operations including sales and marketing, logistics, production, IT systems, financial reporting and accounting.
We understand business operations and supply chains from end to end. Whether it is planning, sourcing, production, or distribution, we know how to address difficult challenges in managing costs. Pinpointing key areas that require immediate attention in the post-deal process, enabling you to prioritize your resources effectively and to return business as usual rapidly.
We provide input on the issues identified during financial due diligence (e.g. appropriateness of certain normalized EBITDA adjustments, variances, forecasting and dashboard analysis).
Post - Deal Services
The Street Finance ensures that you can take control of the business, immediately. We provide an integrated plan in order to address your needs over the first 90 days.
We provide an overview of the ways in which an integration process can be managed to maximize the chances of success, such as determining what assets the entities own, the existence of working councils/unions/collective bargaining agreements or significant pension liabilities, identifying contracts that may need to be re-negotiated; assigned or are subject, identifying governmental permits/licenses/authorizations required for the business, identifying ongoing litigation or compliance issues, determining legal and tax issues arising in a post-acquisition integration.
Valuations and business modelling are fundamental business requirements used in decision making, negotiating transaction price, preparing financial statements and satisfying tax and regulatory requirements.
The Key Questions Are
What are the major value components of your company?
How will your company's financial statements look like after purchase price allocation (''PPA'') and IFRS 3?
What is the value of intangible corporate assets such as brands, patents, etc?
How We Help Clients
We provide services that can support your business objectives by assisting with the development and delivery of your corporate growth strategies.
Valuation
The Street Finance provide services in all value-related matters.
Business Valuation: We advise you on the pricing, when acquiring or disposing of businesses.
Independent Expert Opinion: We provide service to determine value of certain number of shares in the company. We make the value determination in such cases, acting as independent consultants.
Purchase Price Allocation: The term "purchase price allocation" refers to the allocation of the purchase price for a company to all tangible and intangible assets, as required under the relevant accounting standards (IFRS 3 and SFAS 141). We assist you in carrying out the PPA process (post-deal) and advise you regarding the consequences for future financial reporting.
Impairment Test: We provide services in connection with impairment tests on goodwill and other intangible assets that have an indefinite life and require yearly tests in accordance with IFRS 36 and IFRS 38.
Business Modelling
We work with our clients to build and review their business plans and financial models to help to achieve their goals.
Business Plan Preparation: A business plan is a long-term simulation of the businesses. They involve many parameters such as macroeconomic assumptions, sectoral expectations, etc. The Street Finance provides brand-new business plan preparation support and reviewing existing business models to improve.
Financial Modelling: We assist our clients in designing and building the financial models, which correctly reflect all the inputs of the business plan and process these inputs so as to get the required outputs, which are generally profit and loss statement, balance sheet and cash flows statements.
