Saturday, November 7, 2009

Hidalgo Capital Growth Strategy

Hidalgo Capital seeks to develop long-term client relationships based on Trust, Delivery and Service Excellence. We believe in listening to our clients in order to attain an appreciation of their specific business and transactional needs so as to provide them with the most appropriate skills and services. We embrace a culture of entrepreneurship, continually seeking improvement and innovation, while operating as a cohesive unit with a passionate driving force and a steadfast sense of discipline.

We benchmark ourselves against the highest international standards. We are outcome driven and add real value by drawing on and integrating our collective strength and experience in corporate finance.

By actively participating in the business transactions of our clients we are able to equip these businesses with the strategic, structural and operational efficiency essential for a dynamic economic environment.

We seek to make available to our clients the experience that we have gained in various areas of corporate finance in Kenya, East Africa region. This diverse experience coupled with our resident professional in-depth knowledge of the local economic landscape, makes us the natural choice for all local and cross-border transactions.

We look forward to discussing all corporate finance requirements and to being given the opportunity to assist clients on their corporate finance transactions.

SERVICES

Mergers and Acquisitions



A merger refers to the union of two companies of comparatively similar value to create a new entity, whilst an acquisition denotes the purchase of one entity by another.

An understanding and appreciation of the specific socio-legal and economic framework within which a transaction is to operate coupled with the requisite expertise, ensures the attainment of a corporate structure best suited to a client
s unique business requirements. Hidalgo Capital is well suited to perform this complex and critical task in the lifecycle of any business.

Disposals

The successful disposal of a company, business division, subsidiary or asset requires knowledge of local and international markets, as well as experience in transacting in these markets. Our professional team is up-to-date with the legislative and tax jurisdictions within which we operate. We shall agree upon the exact requirements with the client and formulate a disposal process that is appropriate, workable and deliverable.

Typically our involvement covers all stages of the disposal process, including: sourcing potential target companies, analysis, valuation, structuring, negotiation and implementation.


Leveraged Transactions

A leveraged transaction is the acquisition of a company, mainly through debt.

Not only is it necessary to comprehend the particular company
’s cash flow cycle, but also an understanding of the specific tax legislation and policy is key to the successful conclusion of a leveraged transaction.

We provide our clients with the expertise necessary to correctly structure a leveraged transaction. Our understanding of the local economy also assists us in more accurately projecting the cash flow cycles of the target business. Further, using our knowledge of the local market we assist in sourcing the requisite funds for the transaction.



Private Placements

A private placement is the placement of non-listed securities with a select number of suitable investors.

Using our corporate relationships and our knowledge of the local markets we are able to assist companies with their transactions, ensuring the most suitable private placement model is used and identifying the most appropriate avenue for placement.

Management Buy-outs and Buy-ins

A management buy-out (MBO) is the acquisition by managers of an equity stake in the company that they manage, whereas a management buy-in refers to an acquisition by external management. Buy-outs and buy-ins typically use leveraged transaction structures and may be combined with private equity funding.


Our participation in the transaction minimizes the inherent conflict of interest posed by a transaction of this nature; the management team is employed to maximize stakeholders
interests while also seeking to secure the best price for its own MBO. We are able to position ourselves so as to deflect any ill feelings away from the management team.

Restructuring

We provide a full range of restructuring services, discussing the exact requirements of our clients in order to formulate the most suitable restructuring programme. Services of this nature are usually exploited by clients who seek to maximise stakeholder value through legal or balance sheet restructuring or by businesses undergoing periods of economic distress.


Project Evaluation

We conduct thorough project and business feasibility studies and evaluations and provide independent appraisal and advice as to the feasibility of a business project. Our concrete grasp of the operations within the local markets, as well as international trends aids in our ability to deliver a value added report to the project.

Due Diligence Investigations

A due diligence is an in-depth investigation into the financial affairs of a company. Such investigations would look into the reported audited and financial statements of a company over a particular point in time, or over a period. We carry out due diligence investigations on behalf of our clients, and present them with a comprehensive analysis of critical line items, resulting in the preparation of a restated balance sheet.

Valuations

We consider various valuation methodologies in our assessment of value and use those that are most suited to the particular business and industry concerned. Our valuation process is geared towards effectively establishing the value in terms of the future potential of the business.


Debt Issuance

We avail to our clients a comprehensive service in relation to the issuance of debt, from the establishment of a borrowing program to the raising of finance through the placement of the debt. We recommend to our clients the most appropriate option in terms of raising the required funding. Using our experience and expertise we are able to assess the future funding requirements of our clients as well as timing the repayment of the loans to match future cash flows.


Debt Placement

By effectively utilizing our vast country and region-wide network system we are in a position to source investors in order to obtain the requisite funds for our clients. We pride ourselves in our ability to accurately price and structure the debt instruments according to investor requirements.

Debt Restructuring

Hidalgo Capital offers a debt restructuring service, which is tailored to evaluate the client
s existing loan portfolio and to make recommendations on lowering debt costs and minimizing the risk of the current loan structure. As part of our on-going client relationship, we believe it is vital to monitor a clients debt portfolio on a continuing basis in terms of the risk profile.

Employee Share Ownership Plans

We advise and establish Employee Share Ownership Plans (ESOPs). ESOPs are geared towards enhancing an organizations corporate employment ethos by bringing the employees within the ownership structure of the companies which they work for. We manage the ESOPs on behalf of our esteemed clients and facilitate the trading of the units so created.

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