We design financial strategies that maximise long term value. In the process we often shatter corporate finance myths by recommending actions seemingly guaranteed to alienate investors - such as slashing or even eliminating dividend payouts, repurchasing stock at substantial premiums, or increasing leverage ratios to below investment grade criteria. But repeatedly we have demonstrated that markets reward bold initiatives when they are value driven.
Sound financial strategies enhance shareholder value. The optimal mix and structure of debt and equity will minimise the overall cost of capital while a company to meet its funding requirements at reasonable cost and maintaining adequate financial flexibility. A sound financial strategy also will incorporate dividend and stock repurchase policies that serve the best interests of stockholders.
We establish realistic capital structure objectives designed to achieve a desired bond rating or some other measure of financial protection. Our ongoing research of companies with rated debt securities helps in identifying the measures institutional lenders considers most important in pricing credit risk. In addition, we assist clients seeking to establish initial bond ratings in preparing presentations to the rating agencies.
To often companies constrain growth because they are unwilling to tap external funding resources. We believe that financing requirements should be dictated by operating plan, not vice versa. Consequently, a company’s financial strategy should be tailored to its business risk and funding requirements of the business plan and should consider the company‘s financial objectives, funding needs, dividend policy and market conditions.
Capital Raising
We strive to ascertain the most economically attractive and flexible financing structures consistent with current market conditions and management objectives. Most importantly, LANGA ATTORNEYS seeks to protect present shareholder value, while allowing for maximum flexibility. We seek to advise our clients on the process of raising capital and the necessary equity of debt to accomplish the shareholder’s goal. As an advisor, we seek to:
Advise on the optimum financing structure, taking into account the client’s historical and projected operating results, shareholder/management needs and investor requirements.
Assist in the preparation of requisite offering materials for institutional investors to make a solid commitment to purchase the offered shares.
Assist in negotiation conditions to obtain commitments on material terms, including pricing, prepayments, covenant structure etc. Oversee the subsequent phases of the process to assure a timely close.
The rapidly changing needs of companies require flexible sources of financing. Langa attorneys have extensive experience in raising private debt and equity capitals. Our service include analyzing capital structure alternatives, determining anticipated ownership, earnings dilution and debt capacity; providing sample term sheets for each type of security; preparing a placement memorandum to market the proposed transaction to capital sources; negotiating the structure and terms of the financing; and assisting in the completion of transaction documentation.
LANGA ATTORNEYS has access to a broad range of capital sources providing equity, mezzanine debt and senior debt securities. We provide clients with the best people financing to fit their specific needs, including capital to support internal growth, acquisition financing or a management buyout /recapitalization.
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