Transaction Advisory

Financial Due Diligence& Investment Structuring

It is essential for investors, management and project sponsors to have an informed insight into a company’s risks and opportunities, historical operating and financial performance, current market position, future plans and the economic environment in which it operates. BridgeCap Financial Due Diligence process provides clients with these valuable insights.

Our financial due diligence procedures focus on analysis of important trends in historical profitability, earnings, normalised net working capital, identification of debt items included in the statement of financial position and related party balances.

Our thorough due diligence investigation objectively makes these insights valuable to clients through:

  • Establishing the trend of performance over a period
  • Analysis of historic revenues and gross margins by product and customer
  • Analysis of historic operating cost levels
  • Assessment of normalised earnings
  • Analysis of net cash flows, operating results versus operating cash flow
  • Identification of significant investment and funding cash flows
  • Performing balance sheet analysis to establish the worth of assets and liabilities
  • Review of debt terms and conditions
  • Review of off-balance sheet liabilities from existing lawsuits
  • Review of company’s tax position to identify existing and potential tax liabilities.

BridgeCap Investment Structuring solution provides clients with an optimal value in closing a transaction in a structure that is favourable and ring-fenced for their investment strategy. This value is provided through:

  • Carrying out a pre-deal evaluation in order to assess the appropriate financing solution (equity, debt, or mezzanine).
  • Analysing the desired capital structure as a basis of improving the financial perception.
  • Providing expert advice on the most optimal way of financing capital requirements employing suitable financing structures.
  • Structuring a responsive investment case based on the outputs from the due diligence and valuation.
  • Supporting in compiling the require documents (including the information memorandum) to facilitate raising of funds.
  • Supporting negotiations with potential investors and financiers.
  • Supporting in the review of the Transaction Agreements.

BridgeCap Financial Services