For a long time, we have been concerned by the common practice in Over the Counter (“OTC”) derivative markets of end users conducting all their hedging activity with a small group of their “relationship” banks.
Corporate finance theory has long established that companies should maximise their Enterprise Value no matter who the shareholders are.
Banks have traditionally provided funding and hedging acting as principals. The financial crisis has critically reduced banks’ appetite for risk, thus often reducing their role in several traditional investment banking functions to that of ‘matched brokers’.
Financial Advisory and Transaction Structuring
TradeRisks assists clients in structuring transactions to meet their objectives, whether responding to a public sector PPP request for proposals, a Greenfield development opportunity or a buy-side or sell-side secondary market transaction. Our comprehensive suite of financial advisory and transaction structuring services includes:
- Business case development and project evaluation
- Financial modelling
- Risk allocation and analysis
- Potential JV/Partner profiling
- Bidding strategy
- Procurement advice and management
- Preparation of financing structures and models
- Integrating variables such as economic and political risk, legal matters, taxation, environmental and social concerns
- Optimal debt/equity structure
