What services are included in corporate finance advisory?

Corporate finance advisory includes: Capital structure optimization and debt-equity mix planning, Debt financing arrangement and syndication, Equity fundraising through private placement or public markets, Working capital management and cash flow optimization, Financial restructuring and turnaround advisory, Treasury management and hedging strategies, Cost of capital analysis and optimization, Strategic financial planning and budgeting, Dividend policy formulation and shareholder return strategies.

How is optimal capital structure determined?

Optimal capital structure determination involves: Financial leverage analysis and debt capacity assessment, Cost of capital calculation (WACC optimization), Industry benchmarking and peer comparison, Cash flow stability and predictability analysis, Tax shield benefits vs financial distress costs, Business risk profile and operating leverage, Growth capital requirements and funding needs, Regulatory capital requirements (if applicable), Credit rating impact and borrowing costs analysis.

What are the different sources of debt financing?

Debt financing sources include: Bank Term Loans - secured/unsecured, working capital facilities, Corporate Bonds - public issue, private placement, rated/unrated, External Commercial Borrowings (ECB) - foreign currency debt, Non-Banking Financial Companies (NBFCs) - specialized lending, Government Schemes - MUDRA, SIDBI, sector-specific schemes, Alternative lenders - P2P, marketplace lending, Asset-backed financing - invoice discounting, equipment finance.

What are the key considerations for equity fundraising?

Equity fundraising considerations include: Valuation and pricing strategy based on business fundamentals, Investor targeting - angels, VCs, PEs, strategic investors, Due diligence preparation and data room setup, Term sheet negotiation and deal structuring, Regulatory compliance - SEBI, FEMA, Companies Act, Use of proceeds planning and deployment strategy, Investor relations and ongoing communication, Exit planning for existing shareholders, Corporate governance and board composition.

How can companies optimize working capital management?

Working capital optimization involves: Accounts Receivable - credit policy, collection efficiency, factoring, Inventory Management - optimal stock levels, JIT, vendor financing, Accounts Payable - payment terms optimization, supplier financing, Cash Conversion Cycle - minimize days, improve velocity, Technology Solutions - ERP, automation, digital payments, Banking Relationships - multiple banks, credit facilities, overdrafts, Forecasting and Planning - cash flow projections, seasonal planning.

When is financial restructuring required?

Financial restructuring needed when: High debt burden affecting operations and growth, Liquidity crisis and cash flow constraints, Debt covenant violations and default situations, Declining profitability and negative cash flows, Asset-liability mismatch and maturity gaps, Regulatory capital inadequacy, Strategic business transformation requirements, M&A integration and synergy realization, Market downturns and economic stress, Operational inefficiencies requiring capital reallocation.

Corporate Finance Advisory Guide 2025: Complete Capital Structure & Funding Solutions

Quick Summary

Corporate finance advisory optimizes capital structure through debt-equity mix planning, arranges financing via banks/capital markets, manages working capital efficiency, and provides strategic financial guidance. Services include fundraising, restructuring, treasury management, and cost of capital optimization to maximize shareholder value and ensure financial stability.

What is Corporate Finance Advisory?

Corporate finance advisory is a specialized service that helps companies optimize their capital structure, funding strategies, and financial operations to maximize shareholder value and achieve strategic objectives. It encompasses debt and equity financing, working capital management, financial restructuring, and strategic financial planning to support business growth and operational efficiency.

Corporate finance advisory bridges the gap between business strategy and financial execution, providing expert guidance on capital allocation, funding optimization, risk management, and value creation initiatives. The advisory process involves analyzing financial needs, structuring appropriate solutions, and implementing strategies that align with business objectives and market conditions.

Core Corporate Finance Services:

• Capital Structure Optimization: Debt-equity mix and financial leverage planning
• Funding Solutions: Debt financing, equity fundraising, and hybrid instruments
• Working Capital Management: Cash flow optimization and liquidity management
• Financial Restructuring: Debt restructuring and turnaround advisory
• Treasury Management: Cash management, hedging, and financial risk mitigation
• Strategic Planning: Financial planning, budgeting, and performance management

Capital Structure Optimization

Capital structure optimization involves determining the optimal mix of debt and equity financing that minimizes the cost of capital while maintaining financial flexibility and supporting business growth objectives.

Capital Structure Factors

• Business risk profile and cash flow stability
• Industry characteristics and peer benchmarks
• Tax benefits of debt (interest tax shield)
• Financial distress costs and bankruptcy risk
• Growth capital requirements and flexibility
• Credit rating implications and borrowing costs

Optimization Metrics

• Weighted Average Cost of Capital (WACC)
• Debt-to-Equity and Debt-to-Assets ratios
• Interest Coverage and Debt Service ratios
• Return on Equity (ROE) and financial leverage
• Credit metrics and rating agency criteria
• Market valuation and enterprise value

Debt Financing Solutions

Debt financing provides companies with cost-effective capital while preserving equity ownership and control. The choice of debt instruments depends on funding requirements, repayment capacity, and strategic objectives.

Debt Financing Options:

• Bank Term Loans: Secured/unsecured loans with fixed/floating rates
• Working Capital Facilities: Cash credit, overdraft, trade finance
• Corporate Bonds: Public/private, secured/unsecured, fixed/floating
• Commercial Paper: Short-term unsecured promissory notes
• ECB/FCCB: Foreign currency borrowings and convertible bonds
• Asset-Based Financing: Equipment finance, invoice discounting

Equity Fundraising & Capital Markets

Equity fundraising enables companies to raise capital for growth, expansion, and strategic initiatives while sharing ownership with investors who bring expertise, networks, and strategic value.

Private Equity Routes

• Angel investors and seed funding
• Venture capital and growth capital
• Private equity and buyout funds
• Strategic investors and corporate ventures
• Family offices and high-net-worth individuals
• Alternative investment funds (AIFs)

Public Market Options

• Initial Public Offering (IPO)
• Follow-on Public Offering (FPO)
• Rights issue to existing shareholders
• Qualified Institutional Placement (QIP)
• Preferential allotment to investors
• SME platform listings (BSE SME, NSE Emerge)

Working Capital Management

Working capital management optimizes the cash conversion cycle by efficiently managing receivables, inventory, and payables to improve cash flow, reduce financing costs, and enhance operational efficiency.

Receivables Management

Credit policy optimization, collection efficiency, factoring and invoice discounting

Inventory Optimization

Just-in-time inventory, demand forecasting, supplier financing arrangements

Payables Management

Payment terms optimization, early payment discounts, supplier financing programs

Financial Restructuring & Turnaround

Financial restructuring helps companies address liquidity challenges, optimize capital structure, and restore financial health through debt reorganization, operational improvements, and strategic initiatives.

Restructuring Strategies:

• Debt Restructuring: Term modifications, interest rate reductions, principal moratorium
• Asset Restructuring: Asset sales, spin-offs, business divestitures
• Operational Restructuring: Cost reduction, process improvement, rightsizing
• Strategic Restructuring: Business model changes, market repositioning
• Legal Restructuring: Corporate restructuring, scheme of arrangement
• Capital Injection: Fresh equity, subordinated debt, hybrid instruments

Cash Flow Management & Forecasting

Cash flow management ensures adequate liquidity for operations while optimizing cash deployment and minimizing financing costs through accurate forecasting, efficient collection, and strategic cash allocation.

Dividend Policy & Shareholder Returns

Dividend policy balances shareholder return expectations with reinvestment needs, considering cash flow generation, growth opportunities, and capital allocation priorities to maximize shareholder value.

Cost of Capital Optimization

Cost of capital optimization minimizes the weighted average cost of capital (WACC) through optimal capital structure, efficient funding arrangements, and strategic financial management to enhance firm valuation.

WACC Optimization Strategies:

• Debt Optimization: Lower interest rates, better terms, tax efficiency
• Equity Cost Reduction: Improved investor perception, reduced risk premium
• Capital Structure: Optimal debt-equity mix for minimum WACC
• Credit Rating: Maintain/improve ratings for lower borrowing costs
• Financial Risk: Reduce business and financial risk perceptions
• Market Timing: Optimize timing of debt and equity issuances

Strategic Financial Planning

Strategic financial planning aligns financial resources with business strategy through comprehensive budgeting, scenario analysis, and performance management to ensure sustainable growth and value creation.

Treasury Management Services

Treasury management optimizes cash and liquidity management, manages financial risks, and ensures efficient banking relationships to support business operations and strategic objectives.

Treasury Management Functions:

Cash Management:

• Cash forecasting and liquidity planning
• Bank account optimization and rationalization
• Payment systems and cash concentration
• Investment of surplus cash

Risk Management:

• Foreign exchange risk hedging
• Interest rate risk management
• Credit risk assessment and mitigation
• Commodity price risk hedging

Professional Corporate Finance Services

Professional corporate finance services provide expertise, market access, and strategic guidance to help companies optimize their financial structure and achieve growth objectives while managing risks effectively.

Return Filer Corporate Finance Services:

✓ Capital structure optimization and planning
✓ Debt financing arrangement and syndication
✓ Equity fundraising and investor relations
✓ Working capital management solutions

✓ Financial restructuring and turnaround
✓ Treasury management and risk hedging
✓ Strategic financial planning and analysis
✓ Cost of capital optimization strategies

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Unlock Financial Performance & Growth Potential

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