Finsight assists and advises firms in their Strategic Financial Planning to ensure the clients' financial adequacy and it's optimal utilisation for firm's value-accretive growth.

 

 

Finsight understands that access to sound advice is key to effective management. Based on our experience of interacting with investors for over a decade, we know the key variables that impact shareholder value and thus fund raising. While fund raising looks non-correlated to shareholder value, it is what determines the cost of capital, degree of dilution of existing shareholders, including the promoters. Finsight assists firms with advisory services to help firms in inorganic growth through acquisitions, fund raising and IPO preparation.​

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Our services cover:

• Fund Raising Advisory

• Mergers & Acquisitions Advisory

• IPO Advisory

 

 

 

FUND RAISING ADVISORY

Finsight’s advisory for fundraising services is geared towards:

 

• Fundraising requirement from c. INR100m to INR5b

• Support for early stage companies (not start-ups) as well as mature companies

• Fundraising for positive situations (growth/development capital) and negative situations (to reduce debt)

 

We can create unique structured solutions according to the unique requirements which meets the objectives of both the investor and the client. We advise the client on preparing documents including Information Memorandum, CMA, financial projections, etc. needed for investors/lenders, identifying the prospective investors, communicating, responding to queries, structuring and negotiations.

 

Our performance rests on:

• In-depth knowledge and relationships with all types of equity investors –Private Equity firms, High Net Worth individuals/families and Corporates

• Strong understanding of what investors look for as we have arranged and closing transactions as a principal – structures, pricing, returns, valuations, sectors, management issues,exit options

 

 

 

M&A, DIVESTMENTS AND STRATEGIC PARTNERSHIPS

 

Missed opportunities for small and mid-size companies: At Finsight, we believe that inorganic growth is a valid option for growth for small and mid size companies. However, due to lack of internal resources and institutional advisors ignoring this segment, few corporates in this size segment have taken the inorganic route. Inability to access various sources of funds also constrains them from exercising such options. At Finsight, this is the core segment.

 

Finsight can open such growth options for you: Finsight advises firms on their growth strategy, including on inorganic routes. We have advised clients on transactions ranging from INR100m to INR1b successfully, across sectors.

 

We can involve ourselves right from creating the right M&A strategy, identifying targets and screening for right fit, planning financials, approaching the target, negotiations, valuation, deal structuring, and closing the deals. We also devise post-acquisition plan to ensure all advantages expected materialise with a smooth transition.

We also advise on divestment/spin-off of businesses after careful analysis of its strategic implications. We assist in identifying the right buyers and the valuations. Such spin-off have been a result of balance sheet restructuring, strategic moves, and capital generation.

 

All this is best delivered because we are value creation driven and not just transaction driven.

 

What all have we seen:

In our brief history of existence, we have advised the management of a leading information company for executing their ROFR when the majority shareholders were looking for an exit, advised take over of one of the largest commercial vehicle dealers in India and a taxi fleet operator, besides bringing many other opportunities to the table for our clients. We are also advising on spin-offs as part of the holistic business restructuring exercise. We are also assisting our clients in negotiating with various sets of investors, including both financial and strategic. Right now, we are also working on getting foreign partnership for our client.

 

 

 

 

IPO ADVISORY

 

While it is a common practice in Europe and now in the U.S., Indian corporates are just beginning to use IPO Advisors who act as a buffer between the corporates and the Investment Banks.

 

Why most IPOs have below expectation success: Decisions to go public are amongst the biggest decisions in a corporate’s life and has to be taken with utmost consideration of all due factors. In a large number of cases, these are driven by need for growth funding. Having seen many corporates closely going public, something that has struck is the kind of under-preparation for the after life. A lot of this is owing to lack of internal resources to plan and prepare right from the early phases of IPO planning, which spills over to post listing. Interestingly, most promoters have their expectation set low by the Bankers right from the beginning and the clients have no way of benchmarking expectations.

 

Bankers get you the cash, not the right value: Particularly for relatively small-to-mid size companies, there is lack of adequate attention from the Bankers, which impacts the quality of response that the IPO gets. This may be due to priorities of other lucrative clients, not deploying enough resource to understand you and create the best story, and other such factors. The key focus for them remains to complete the process, even if its suboptimal. Additionally, most corporates do not necessarily have the wherewithal to deal with these I-Banks, rating agencies, PR agencies, etc. An IPO advisor works as an insider to deal with these external agencies to ensure the best results. The Bankers also prefer to deal with such experts as they share a common background and understand each other better. Together, they are able to complement the roles, making the IPO a better success.

 

Delivering higher value pre and post IPO: Finsight can start early with you, right from deciding whether and when you should be accessing the markets. This role is not merely transaction-driven, but seeks to prepare the company for the long process involved. Right from documentation, due diligence, identifying the right Bankers, supporting preparation of collaterals, pre-IPO investor meetings, to post-listing handover to the IR function in a smooth way, Finsight can assist you in ensuring that this once-in-a-lifetime event goes as per expectation. Not just that, while the Bankers discontinue their association, we can continue to support your Investor Relations. (For more on this, please see our Investor Relations section) We have experienced advisors who have been part of such preparation.

 

We would be happy to discuss with you how we could assist you in creating shareholder value. Please get in touch with us.