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PRIVATE EQUITY


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Private equity is class of asset consisting of equity securities in operating companies that are not publicly traded on a stock exchange. We facilitate private equity investments between private equity firms, venture capital firms, or angel investors to growing and profitable Indian companies.

In view of India’s phenomenal industrial growth, Private equity (PE) has established itself as a recognized financial instrument over the past decade. The participants believe that good fundamentals in capital markets look auspicious for PE in India which would continue to grow and evolve. Due to raising inflation, leading to rising interest rates, over leveraged companies feel increased pressure on corporate earnings and for them PE looks attractive both in the near term and over the longer run. Indian companies could look at,

  • Recognizing PE as a source of active capital that can help build their businesses

  • Availing working capital to nurture expansion, new product development, or restructuring of the company’s operations, management, or ownership

  • Seeking value-creation advice and global expertise can bring considerable financial sophistication to their portfolio companies

  • Gaining access to their networks of relationships and experience derived from their work with companies across a broad spectrum of industries for a mutual benefit

  • Seeking direction to strengthen corporate governance practices in order to make the boards more professional

  • Sharing best practices in systems, operational and marketing processes for project delivery

Our Criteria

  • Minimum 3-year operating, growth history with minimum Rs. 5 Crs EBITDA recent year
  • EBITDA margins should be exceeding 20% with 3 year CAGR exceeding 25%
  • Seeking capital for expansion – minimum Rs. 50 Cr, with a strong management in place
  • Having a scalable business, strong and profitable business model and clear business plans
  • Companies that are open to good corporate governance and financial discipline

Our Procedure

  • Exclusive mandate to be signed between us and the borrower
  • NDAs and fee-sharing agreements signed to have clarity in the transaction
  • Q&A with management, so that we thoroughly understand the business model
  • We require a professionally-prepared information memorandum
  • We will make overtures to suitable investors to gauge interest
  • Investor road show: physical meetings and virtual via video
  • Deal closing: due diligence (where required), agreements

Our Strength

  • Long standing relationships with Private Equity funds - Access to key decision makers at Private Equity funds gives us an unparalleled edge in optimal structuring and efficient closure of transactions.

  • High quality execution - An experienced team of professionals ensures due diligence, complete confidentiality, strong focus on deal structuring, implementation and quick turnaround time.

  • Focus on long term relationships - In addition to handholding the client across the entire transaction process, we provide continued support post-transaction and have the expertise to cater to investment banking needs of the client throughout his business lifecycle.

After the initial analysis an investment proposal, a term sheet is issued within a time frame depending on the complexity of the business model, followed by 6-8 weeks to complete due diligence, investment documentation and disburse capital.

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