Firm Services News Team Network

Quality Standard


 


Entrepreneurs expect that their objectives will be understood, they will be able to see their alternatives, their deal will be negotiated and closed professionally.

Understanding Client's Objectives

Nothing is more important to quality of the service than the fact that it  is really needed.

We believe there is always a strategic move our clients can make to enlarge the capital gains they will be able to realize. Our clients feel it and the feeling of the opportunity makes them restless in their quest for the solution. We spend our time understanding the client's objectives rather than peddling a certain investment banking idea. We do not have a value proposition for everybody and we have to be very selective about our clients but when we see what we can do for you - you have probably found the solution.   

Open dialog with the client results in our understanding of what is to be done in the best interests of our client at the moment and what we can help in:

   Securing Control
   Financing Growth
   Selling Control

Discovering Alternatives

When objectives have been clarified we look for best solutions available in the market. There always are alternatives, and of them we choose together with our client the best deal to pursue.

Managing international private equity fund (UVC Ltd.), we saw striking differences in access to capital for companies belonging to the same investment class in regard to their fundamentals. We feel that the reason for these differences was the idea shared by entrepreneurs and their advisors on what can be achieved in today's capital markets. Sometimes we met entrepreneurs selling their business better than their financial advisors because as businesspeople those entrepreneurs did not forget about exploring the demand and paid less attention to routine matters of documentation.

Why can we do this better? We simply work harder looking for alternatives. We probably understand buy-side better than a number of our competitors since unlike them we have years of working in private equity funds and acquisitive corporations, which involves a lot of deals done and rejected by us on the buy-side.

Negotiating Transaction

Any deal is a child grown up in negations: it requires maintaining constructive relationship, attention, balance of "yes" and "no", patience, and fair judgment. Experience of success in done deals can hardly be counterbalanced by anything.

Sophisticated valuation helps us understand what should be achieved and what is achievable with this particular counterparty. In order not to lose a good opportunity to sell or invest, the valuation should be reasonably aggressive, while being reliable enough to prevent closing of a bad deal. In our sell-side deals done so far our clients have never closed below our valuation. Our private equity investment in Newspaper Direct, where we topped other competing funds, resulted in the rate of return that justified the price we had paid.   

When our clients have signed the final agreement (Share Purchase Agreement, Investment Agreement, etc.), it is the deal structure that translates the contract price into a combination of the rights and obligations with a certain value to our clients. In fact, it is easy to be misled about this value. We implement our advice on deal structure through painstaking negotiations and deliver solid agreement rather than a conceptual term sheet. As a result, through closing under our guidance our clients receive what they expect to receive.   

From the start we work on the transaction with legal advisors, who we have known for years or who have been recommend to us by our best business partners.  

Closing Transaction

Since an excellent agreement on transaction is a plan, the result is delivered through its implementation. The final product of our efforts for our clients is cash or purchased securities  transferred to them.

Certain events may or may not happen, and sometimes contingent provisions should be professionally re-evaluated and applied. It is good when both parties are interested in fastest closing, but it is not always the case.  Sometimes  it is easier to negotiate an adjustment to agreement that produces the same result rather than to follow the covenant, which becomes a burden to both parties due to unexpected external events.

 We can also provide our client with help managing cash or investments resulting from the  transaction immediately after closing until our client puts the assets under management with another firm or with in-house team.

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