From our Research

Corporate banking and Finance in Russia and former USSR countries

Our outsourced teams of corporate bankers and finance specialists are composed of past and present market practitioners with years of diversified M&A, IPO, ADR and GDR knowledge and experience who are applying their techniques every day in real situations.

Our corporate banking services are of special value to the young bankers of Russia and the former USSR countries in particular and other republics of the developing world in general. Our online merchant banking services include a suite of inter-related and complementary financial services and products, tailored and designed to help local corporate bank executives, regulators, investment and financial brokers operate more effectively and profitably in their risk environment. The aim is to give to them, practical application of modern banking and constant reliable upgrading of their financing and investment techniques, within their working place and according to prevailing local conditions. Our corporate banking services will include:

Valuation techniques of Projects and Companies; and the When, Where and How to apply them

• employ the risk/reward ratio
• defining cash flows, interest rates, inflation and exchange rates
• determine acceptable shareholders value
• choose the operators in corporate finance and determine their roles

Evaluate types of risks and companies’ strategy towards choosing and dealing with risks

• categories and analyse the business risk
• stock markets rating of listed companies, the perceived risks and opportunities

Determine which method of financing a company/ project should use and the associated cost of capital

• calculating required returns and cost of capital
• capital budgeting , applications and other financial decisions
• types of debt, equity and the perspective of lenders and equity investors
• alternative forms of borrowing including leasing and pre-export financing

Flotation of companies - reasons for and methods of company flotation

• raising equity, new issues and IPOs
• why float your company, options, suitability and alternatives
• preparations for flotation determine equity issue and methods, choosing time to launch, post-listing requirements
• corporate valuation: Assets, Cashflow, Cashflow- vs -Earnings techniques
• valuation of project/ company
• strategies to introducing your company/ project to financing and capital markets

Assist in revealing the myths of Mergers and Acquisitions (M&A) and the difference (or relations) between Public and Private take-over

• reasons for acquisition, finding and approving the target company, determine the different types of acquisitions
• public- vs -Private Take-overs, the essential elements in each type of transaction, the Blue Book and most Stock Exchange issues
• privatization, corporate restructuring, financial distress and rehabilitation issues and remedies

There is a need to reinvent the BOT, BOO and BOOT project financing model

Witness the past decade, the BOT project financing model was highjacked by large western engineering, construction and multinational utility companies, claiming that they alone have the resources and the means to successfully develop and finance BOT type projects in the Emerging Markets. Those handful of “major players” rely upon their large financial resources, leveraged by cozy relations with international and regional banks, export credit agencies, multi-lateral agencies and a number of major investment banks, to decide and control the development of essential infrastructure projects in the Emerging Markets. Practices and consequences:

• politically inspired elitist practices;
• collusion with manufactures, traders, suppliers, engineering and construction companies;
• distortion of the real equity value of project sponsors (usual equity claims;
  25% - 30%) most of it is attributed for front-end development costs;
• substantial increases in project costs due to parallel increase in debit finance requirements;
• exorbitant (returns on equity)expectations, in some cases exceeding 23% PA;
• unwarranted increase in the cost of the production unit to local end users;
• lack of transparency and stifling of competition;
• compromising the main tenant of BOT projects of its “limited or no recourse” debit financing, resulting in the unwelcome burden of increasing the national debt of the host country.

Fundmore will proactively use its extensive financial engineering experience and knowledge of these emerging markets, to harness the transforming powers of the Internet to loosen the multinationals grip over this essential development sector to the emerging markets countries. A number of measures are planned including:

1. Open the project processes to the multitude of medium size firms, qualified to undertake the planning and execution of all types and sizes of projects;
2. Give equity investors, fund managers and institutional investors, first-mover  advantage in accessing  BOT type project, to participate and to impact the  planning , supervision and execution events of projects;
3. By way of competitive online open tenders, seek the participation of suppliers, contractors, subcontractors, engineering, sub-traders, operators  and managers;
4. Offer governments sound alternatives to their costly reliance upon  Multinationals as project sponsors.