What are Corporate Advisory Services?

Corporate advisory services in Kenya are activities that combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners.

At 2Max Group, we render corporate advisory services in Kenya to private and public bodies in pursuit of their business excellence; the services are driven by the client’s needs to attain their organizational objectives and goals.

Our array of services includes:

  • Corporate fund-raising initiatives/Loan Assistance
    • Term Loan
    • Consortium Loan
    • Working Capital Financing
  • Venture Capital financing/ Private Equity
  • Corporate restructuring efforts
    • Financial Restructuring
    • Organizational Restructuring
    • Structural changes in incorporated institutions
  • Company Valuations
  • Corporate Finance in the planning of business services
    • Financial Planning
    • Project  Appraisal
    • Due Diligence
    • Private Equity
    • Pre IPO Placement
  • Corporate fund-raising initiatives/Loan Assistance

2max Group assists clients in raising credit from financial institutions, banks, and other lending institutions. On behalf of the client, we will identify the sources of funds to be procured from and subsequently make arrangements to comply with the formalities required in procuring the funds.

The corporate advisory services in Kenya will generally include preparing project details, identifying the source of funds, negotiating rates, preparing and filing the loan applications, obtaining necessary documents, and complying with the terms and conditions for the availability of loans.

We will mainly assist our clients on:
Term Loan: Long-term loans are paid on an installment basis (equal monthly installment basis), including principal and interest. Companies usually take term loans for financing in areas such as the acquisition of premises, plant and machinery expansion, new machinery purchase, or adding extra fixed capital to enhance their business.

 

Consortium Loan: Consortium loans are generally long-term loans and require colossal financing. A consortium loan is a process of arranging loan facilities for a company whereby many banks collectively fund a project to reduce their risk exposure in a single project that requires a large sum of money.

 

A loan size of above 1 Billion needs to be done through a consortium loan. We identify the lead bank, make necessary negotiations and communication with them, and syndicate lending institutions on the client’s behalf. We use our expertise and network link from parent companies to arrange for a consortium loan.

 

Working Capital Financing: Working capital loans are generally short-term and revolving. Working capital loans focus on financing a company’s day-to-day cash needs, improving its liquidity position. Financing working capital can be done through an overdraft facility arrangement or short-term loan.
We assist our clients in arranging sources of funds required to finance the day-to-day operation of the business. We work with them to set up short-term loans, overdrafts, and letters of credit.

We assist our clients in arranging sources of funds required to finance the day-to-day operation of the business. We work with them to set up short-term loans, overdrafts, and letters of credit.

Venture capital financing

Venture capital primarily finances companies in their seed stage or start-up companies deemed to have great future potential for growth. Financing for seed stage companies is done through a collection of funds pooled from different investors, or it can be an angel investor who finances the projects. Venture capital funding can start with an early seed stage where companies are yet to be established, to a later scene where the companies are fully grown to begin commercial operation of their products.

2Max Group assists companies at the seed stage in assessing the project’s viability and arranging financial resources. As an advisor, we conduct an evaluation of business plans, including analysis of the market scenario, product analysis, organizational capacity assessment, and financial projections to assess whether the project is financially viable.

Once the project is feasible, we, on behalf of the client, identify the sources of funds, negotiate financing terms, obtain necessary documents, and ensure compliance with prevailing laws applicable to the project.

Corporate restructuring

Corporate restructuring means making a strategic decision that can reshape an organization’s size, position, balance-sheet structures, or ownership. Corporate restructuring can be classified into financial restructuring and Organization restructuring.

  1. Financial Restructuring: Financial restructuring is the process where a company’s balance-sheet structures are changed. Debt to equity position is a re-balance, or debt payment is rescheduled. The financial restructuring will also be a strategic decision on cross-holding patterns or demerger.
  2. Organizational Restructuring: Organization restructuring is where a company’s internal processes are restructured. This includes reorganizing the departments, re-establishing vertical and horizontal lines of the chain of command, and downsizing employees or business segments. 2Max Group provides corporate advisory services in Kenya to modify the balance-sheet structure, organizational structure, or line of business depending upon the client’s need, thereby improving the financial health of the client’s business. We will assist decisions to sell assets, re-arrange sources of finances, or on decisions on mergers and acquisitions based on our expertise and recommendation from our valuation and research team.

Company Valuations

Valuations are carried out to get the correct price or the fair value of any company. Valuations are based on an in-depth analysis of the company, market forces, economic conditions, and valuators’ judgment. Valuations are essential in decision-making for buying, selling, issuing securities, or negotiating a price in a merger and acquisition.

 

To assist the clients in making excellent and well-informed investment decisions, 2Max Group provides business valuation and assets valuation services based on the most appropriate valuation technique selected, out of several valuation techniques available in the market, by our advisory team involving valuation experts.

Corporate Planning

Corporate advisors are individuals or firms indulged in providing advisory services to their clients. Corporate advisors work with clients to serve various needs of the clients. Some significant work carried out by corporate advisors is preparing business plans, performing valuations, conducting due diligence, or advising them to enhance their operational efficiency.

  1. Business plan: as an advisor, investment firms will work closely with clients to show them a road map for their business. This includes studying the market and relevant laws in detail, performing financial projections, and advising them on operating plans for their business.
  2. Valuation: As an advisor, as per the client’s needs, valuations may be done for internal purposes, i.e., evaluating the business itself or the value of a target firm that is concentrated on strategic buying or merger and acquisition.
  3. Due Diligence: As part of the investment bank’s relationship with an advisor on behalf of the clients, Investment banks conduct independent due diligence that can be focused on product appraisal, strategic buying, or merger & acquisition.

2Max Group helps clients, based on their needs, to develop a business plan to drive their business to success by assisting them in setting their goals, identifying target markets through advanced market research, and advising tools to meet targets.

Private Equity

Private equity means investments done through collecting a pool of money in companies at an early stage or already in operation. Private equity can take the form of venture capital or leveraged buyout. Venture capital seeks to fund seed-stage companies. In contrast, in a leveraged buyout, a target firm is brought by a private equity firm by debt financing, leveraging the target companies by collateralizing their asset or cash flow to fund the buyout.

 

2Max Group(Corporate advisory services in Kenya Firm) acts as a liaison between investors and companies to arrange a source of funds for the company. We work with companies at different stages of operation and looking to get additional capital or expert-level management services. We extensively evaluate the business plan, conduct extensive market analysis, and conduct independent due diligence to get the company’s fair value.

We use our networking to connect investors with our clients based on the fair value derived from our due diligence & valuation; we also negotiate deal terms that protect the investors’ equity investment. We also assist our clients in preparing an exit strategy and finding strategic buyers.

Pre -IPO Placement

2Max Group assists clients in collecting funds before the issuance of its IPO as Institutional investments

Target Segment

  • Established Entrepreneurs (Looking for extra capital)
  • Established Business Firms
  • Foreign companies and agencies looking to invest in Nepal
  • International Financing Agencies
  • High net worth Individuals (HNI’s)
  • Young Entrepreneurs
  • Small and Medium-Sized Enterprises
  • Bank & Financial Institutions (BFIs)
  • Insurance Companies, Private Companies, schools & Colleges, Trusts/Funds/Welfare organizations.

Business Development

  • Referrals from our parent company on businesses such as Valuations, Private Equity/Venture Capital, and feasibility studies.
  • Referral businesses through the BoD of SBL and SCL on Corporate Advisory services in Kenya, Valuations, PE/VC, Loan Syndication, etc.
  • Tender bid