Information

The capital structure is defined as the careful balance between equity and debt that a business uses to finance its assets, day-to-day operations, and future growth. An optimal capital structure is the best debt-to-equity ratio for an entity that maximizes its value and minimizes the entities cost of capital. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. As the businesses are growing at a very wide scale and with the admission of startups, the requirement for funding is increasing day by day and to fulfill that need of business funds are required from different sources. To identify which source is beneficial and ways of investing in business are very crucial. CoKaCo specialize in advisory services and preparing optimal capital structure.

Our Services :-

CoKaCo Capital Structuring team advises companies on their capital structure, linked to acquisitions, refinancings, restructurings and other major events and we advise clients on their capital structure or related topics across the globe. As leading advisor, our mandates typically include:

  • Financial modelling and debt structuring
  • Debt capacity analysis
  • Impact analysis of corporate events on financials (including liquidity analysis), credit ratios, covenants and credit rating
  • Evaluation, recommendation and coordination with respect to different funding products

We provide to our clients with integrated funding raising advice to SME and MSME. The capital structure advice provided is based on a proprietary tool. It offers business managers and shareholders a diagnosis of their company’s financial structure (right debt product, maturity, covenants, fee structures and market timing). Based on predefined specifications (business plan, shareholders’ constraints), we put forward adjustments to this financial structure in order to achieve more flexibility and continuity, which in turn contributes to better company growth.

Key Features :-

  • In-depth understanding of alternative sources of finance & methodical analysis of Client firm competitive advantage
  • Maximize Effect of Financial Leverage
  • Unique strategy to take advantage of its core competences
  • Innovative, objective and timely guidance right from raising equity capital, including valuation, alternative existing debts.

FAQ :-

How is capital structure calculated?

Capital structure is the percentage that each capital component represents of the sum total of a corporation’s complete financing structure.

Why is it important to understand a company's WACC figures?

Understanding a company’s “Weighted Average Cost of Capital” allows management to better understand the cost of financing which allows the management team to make better choices when strategizing on how to raise capital.

How does the amount of working capital affect a business?

In order to be able to operate a company must have enough working capital to pay its obligations and cover the costs of its financing. If a corporation’s current liabilities are greater than its current assets, it is described as having a working capital deficiency.

What does the term "leverage" mean when used in the context of financing?

A company is considered highly leveraged when its financial structure has a significant amount of debt financing. This high-level of debt signifies that financiers have leverage over the existing corporation.

Information

The capital structure is defined as the careful balance between equity and debt that a business uses to finance its assets, day-to-day operations, and future growth. An optimal capital structure is the best debt-to-equity ratio for an entity that maximizes its value and minimizes the entities cost of capital. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. As the businesses are growing at a very wide scale and with the admission of startups, the requirement for funding is increasing day by day and to fulfill that need of business funds are required from different sources. To identify which source is beneficial and ways of investing in business are very crucial. CoKaCo specialize in advisory services and preparing optimal capital structure.

CoKaCo Capital Structuring team advises companies on their capital structure, linked to acquisitions, refinancings, restructurings and other major events and we advise clients on their capital structure or related topics across the globe. As leading advisor, our mandates typically include:

  • Financial modelling and debt structuring
  • Debt capacity analysis
  • Impact analysis of corporate events on financials (including liquidity analysis), credit ratios, covenants and credit rating
  • Evaluation, recommendation and coordination with respect to different funding products

We provide to our clients with integrated funding raising advice to SME and MSME. The capital structure advice provided is based on a proprietary tool. It offers business managers and shareholders a diagnosis of their company’s financial structure (right debt product, maturity, covenants, fee structures and market timing). Based on predefined specifications (business plan, shareholders’ constraints), we put forward adjustments to this financial structure in order to achieve more flexibility and continuity, which in turn contributes to better company growth.

  • In-depth understanding of alternative sources of finance & methodical analysis of Client firm competitive advantage
  • Maximize Effect of Financial Leverage
  • Unique strategy to take advantage of its core competences
  • Innovative, objective and timely guidance right from raising equity capital, including valuation, alternative existing debts.
How is capital structure calculated?

Capital structure is the percentage that each capital component represents of the sum total of a corporation’s complete financing structure.

Why is it important to understand a company's WACC figures?

Understanding a company’s “Weighted Average Cost of Capital” allows management to better understand the cost of financing which allows the management team to make better choices when strategizing on how to raise capital.

How does the amount of working capital affect a business?

In order to be able to operate a company must have enough working capital to pay its obligations and cover the costs of its financing. If a corporation’s current liabilities are greater than its current assets, it is described as having a working capital deficiency.

What does the term "leverage" mean when used in the context of financing?

A company is considered highly leveraged when its financial structure has a significant amount of debt financing. This high-level of debt signifies that financiers have leverage over the existing corporation.