Services related to Capital Structure Change from IMC
The willingness to grow is the biggest motivator for a company. However, growth leads to evolution which eventually makes way for capital restructuring. Initially, a business pre-assigns equity, debt, and capital flow based on the statutory requirements of the concerned region.
Once the business starts growing, these aspects need to be revisited, precisely to adjust the corporate hierarchy according to the existing cash flow and financial standings. This is where IMC comes into the play by offering unparalleled assistance.
A company is always eyed by stock investors and it is the balance sheet that validates the credibility and the growing potential of the same. In most cases, asset performance, capital structure, and working capital are the basic evaluated factors. When a company starts off, it might be higher of debts and low on equity; thereby resulting in a particular capital structure.
Upon evolution, the balance sheet changes, with the debts minimizing and equity growing at a substantiated rate. This is when it becomes important to change the capital structure, to maintain the desired levels of transparency, in front of the investors, shareholders, and even internal or external stakeholders.
From the perspective of an organization, the Capital structure is basically the net sum of the DO or Debt Obligation and the TSE or the Total Shareholders’ Equity. As these values keep changing with time, structural changes to the capital become all the more important.
The most challenging aspect for a company is to realign the capital structure based on the changing DO and TSE. Moreover, the restructuring is imperative as it allows the company to reorganize itself while preparing for better income generation, succession planning, and even better governance. At IMC, we make things easier for the company by lending prudent advice regarding the most relevant capital structure, according to the business lifecycle.
Our seasoned professionals carefully analyze the financial books of the company and work in unison with the in-house advisors for understanding the specific requirements. Not just the organizational capital structure, at IMC, we also make it a point to address the more-tailored requirements, including shareholder equity structuring while he or she prepares for the exit.
- Structural changes for releasing surplus equity
- Services related to surplus equity releasing
- Share capital consolidation
- Checklist preparation
- Legal debt handling and changing capital structure, accordingly
- Ability to analyze bonus shares and dividends
- Shareholder payment sub-division
- Advisory inputs
- Debt Ratio assessment
- Analysis of the organization’s financial standing
- Issuing a fresh set of shares for raising capital
- Loss minimization
- Equity documentation
- Capitalization ratio assessment
- Business Risk Analysis
IMC understands that companies struggle when it comes to creating the perfect debt-equity relationship. Our experts carefully analyze each financial transaction while keeping a close eye on the debts, liabilities, and profits while moving forward. Besides that, we also function as the contractual advisors, assisting CFOs with balance sheet management.
Our role is to render a support strategy for changing the capital structure, based on organizational requirements. We also make sure that companies can quickly realign the capital structure during financial difficulties or to seize the growth opportunities in plain sight.
We strive for perfection and lend complete assistance, either as independent service providers or as an extension to the in-house advisory committee.