Strategic Advisory

CalErin sell-side advisory services cover every stage of the client’s divestment process. If you’re considering selling your company, our industry-focused professionals can provide invaluable insights as well as strategic advice. We guide our clients throughout the entire transaction process, by providing tailored solutions to assist our partners in successfully completing divestments.

Our Sell-side Advisory services  include:

1. Assisting the business owner in defining his or her objectives;
2. Develop and formulate a marketing strategy
3. Preparing a confidential information memorandum;
4. Conducting a business valuation;
5. Assist our partners in developing the right negotiation strategy
6. Identifying and qualifying potential buyers;
7. Evaluating proposals;
8. Negotiating and closing the deal, and post deal integration.

We welcome the opportunity to discuss your divestment strategy.

CalErin’s  Buy-side advisory services extend to every stage of the transaction, ranging from deal sourcing, project evaluation, initially recommendations through to post-deal integration.

If you’re considering selling your company, our industry-focused professionals can provide invaluable insights as well as strategic advice. We guide our clients throughout the entire transaction process, by providing tailored solutions to assist our partners in successfully closing any and all acquisition targets.

We guide our clients throughout the entire transaction process, which includes:

1. Developing and refining our partners acquisition criteria;
2. Identify, screen and initiate discussions with potential acquisition targets;
3. Conducting preliminary due diligence and valuation;
4. Help prepare the letter of intent, and negotiate the (SPA) Sales and Purchase Agreement;
5. Orchestrating closing due diligence;
6. Structure and negotiate transactions;
7. Closing/post-deal integration;
8. Arrange acquisition financing;
9. When applicable, assist in obtaining Government approval.

CalErin Advisory has the industry and transaction experience to help our clients achieve their objectives. We welcome the opportunity to discuss your acquisition strategy.

CalErin Advisory team works closely with partners in order to identify their key investment criteria, from industry profile, risk appetite and investment parameters, timing, and portfolio synergy. Our dedicated team can find off-market opportunities otherwise not available, and advise on any specific targeted transactions.

Once we are familiar with our partners investment criteria, we will continuously update you on new opportunities and micro-economic trends relevant to your strategy.

Our extensive network throughout the region, and ability to leverage those contacts for our partner’s benefit, means CalErin Advisory is better positioned to meet our partner’s high expectations and strategic goals.

CalErin Advisory has the industry and transaction experience to help our clients achieve their objectives. We welcome the opportunity to discuss your acquisition target criteria.

With the uncertainty and instability of today’s macroeconomic climate, the need for in depth analysis prior to market entry has never been so important. CalErin Advisory can help you make more informed decisions by providing a detailed and thorough overview of the market.
Due to our teams intimate knowledge of local markets, this allows us to be able to make the right decisions on critical and far-reaching business and economic issues in a fast paced and constantly changing political environment.
This allows our partners to identify hidden niche opportunities, and be better prepared for entering any given market.

We can help answer these questions:

1. What is the business potential for my company in Balkans, CEE, SEE as well as other emerging markets?
2. How will my company fit within the competitive landscape of the region?
3. What are the most feasible and attractive ways of entering the region?
4. How to operate in the target country from a tax & legal perspective?
5. Do the countries corporate structures and judiciary laws, protect foreign investors?

CalErin Advisory has the industry and local experience to help our clients achieve a seamless entry and exit from any given market. We welcome the opportunity to discuss your plans and growth strategy.

CalErin Advisory works with the company’s executive management, in order to develop a turnaround plan and growth strategy, which is based upon achieving operational efficiently, and consistent but sustainable profitability.  CalErin Advisory has helped Turnaround businesses in a variety of industries, by developing and implementing clear guidelines which lead to sustainable growth. In the Balkans, CEE, SEE as well as other emerging markets  businesses face a multitude of challenges, from shifting Microeconomic climates, political uncertainty, and a more technology focused landscape, and competitive environment, as well as  global economic uncertainty. People struggle with change, and are sometimes late to adapt to new business norms and best practices. Companies with financial  and operational problems,  particularly ones with over-leveraged situations, has the potential if not addressed correctly to create discontent in the workforce and executive management, which leads to a crisis. Success is only achievable when clear guidelines are adhered and met by all. CalErin will provide advice on all aspects of the turnaround process, and help implement complex solutions to all the issues at hand.

Our Business Turnaround services cover:

1. Review, of audited accounts, business model and current growth strategy.
2. Stabilize core operations;
3. Review financial projections;
4. Address the company’s liquidity issues;
5. Review all cost reduction possibilities;
6. Implement cash conservation measures with clear guidelines;
7. Identify and dispose of non-core assets;
8. Preparation and implementation of new business model and growth strategy;
9. Assist in operational restructuring;
10. Develop pre-bankruptcy plans;
11. Develop employee incentive plans.

CalErin Advisory has the industry and local experience to help our clients achieve a sustainable turnaround growth strategy. Let us help you find the right path for your firm.

CalErin Advisory is well placed to meet the demands of State & Multinationals. In the established developed economies of Western Europe and the US, opportunities are fewer, and margins ever lower. Multinationals are increasingly seeking opportunities in Emerging and frontier markets, in order to supplement their growth and maintain sustainable consistent profitability.

This can be a difficult task as Multinationals generally can only entertain new opportunities in new markets, which carry huge capital deployment. So careful consideration and analysis must be placed on the areas of interest.

CalErin believes investing in the emerging as well as frontier markets necessitates a specialist approach, which combines a presence on the ground, regional network, local knowledge and management expertise. CalErin has a talented team with in-depth knowledge and experience, which is purely focused on seeking out the best opportunities for our clients.

Our extensive network throughout the region, and ability to leverage those contacts for our partners benefit, means CalErin Advisory can evaluate Investment opportunities as well as highlight any hidden risks much more easily than other investment and advisory firms.

CalErin Group assists Multinationals with their growth strategies, by acting when needed as their Business development arm. We identify investment opportunities, facilitate and provide access to regional and governmental leaders, while successfully managing the entire process in order to realise value for our Investor partners.

This local knowledge and experience puts us in a unique position, where we are better positioned to meet our partners high expectations and strategic goals.

CalErin Advisory has the industry and local experience to help our clients find and implement large scale greenfield Investment strategies. We welcome the opportunity to discuss your Investment plans and growth strategy.

Leveraged Buyout – LBO

The acquisition of another company using a significant amount of borrowed money (bonds or loans) to cover the cost of acquisition. Often, the assets of the company being acquired are used as collateral for the loans in addition to the assets of the acquiring company. The purpose of leveraged buyouts is to allow companies to make large acquisitions without having to commit a lot of capital.

Management Buyout – MBO

A transaction where a company’s management team purchases the assets and operations of the business they manage. A management buyout (MBO) is appealing to professional managers because of the greater potential rewards from being owners of the business rather than employees. MBOs are favored exit strategies for large corporations who wish to pursue the sale of divisions that are not part of their core business, or by private businesses where the owners wish to retire. The financing required for an MBO is often quite substantial, and is usually a combination of debt and equity that is derived from the buyers, financiers and sometimes the seller.

When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid.

CalErin Advisory Debt Financing services include the arrangement, negotiating and structuring of a wide range of senior debt and mezzanine financings, which meet our clients’ objectives, such as:

1. Growth Capital
2. Shareholder Liquidity
3. Recapitalizations
4. Shareholder & Management Buyouts
5. ESOP
6. Acquisitions
7. Bridge Loans
8. Debt Restructuring

At the outset we work with our clients in order to understand their short-term and long-term financing requirement needs, after which we devise a comprehensive financing strategy, and assist them through execution of a transaction.

CalErin maintains an extensive network of commercial banks, specialty lenders, mezzanine lenders, Family Offices and private funds, and remain up to date with their lending parameters.  Our ability to recognize the appropriate capital sources that match our clients needs,  saves our clients time, effort and reduces financing costs.

A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies.

Since mezzanine financing is usually provided to the borrower very quickly with little due diligence on the part of the lender and little or no collateral on the part of the borrower, this type of financing is aggressively priced with the lender seeking a return in the 20-30% range.

Mezzanine financing is advantageous because it is treated like equity on a company’s balance sheet and may make it easier to obtain standard bank financing. To attract mezzanine financing, a company usually must demonstrate a track record in the industry with an established reputation and product, a history of profitability and a viable expansion plan for the business (e.g. expansions, acquisitions, IPO).

There are opportunities to invest in the co-financing of EU projects. The financing otherwise would have to be secured by the Ministry, State body or Municipality. This is dependant from programme to programme, but generally the co-financing portion is between 20 and 30%, while EU Funds cover the balance. This is an attractive scenario for Investors to become part of a Government or Municipality backed project, one where participation carries limited to no risk on investment, with a guaranteed benefit. Generally these projects are huge and are in the sphere of infrastructure, energy and production. For example there are instances where the Government or Municipality has over budgeted their finances in any given calendar year, and because of this is forced to shelve the EU Projects until the next EU funding program window becomes available. While in some cases they would prefer to wait in order for the State or Municipality to finance the 20/30% portion, however a lot of Government as well as Municipality authorities would welcome a strategic partner to put up the co-financing portion they would otherwise have to commit, as this would allow for the project to be realised much quicker.

Invest in projects which are for one or another reason not adopted by EU, but have business plans showing significant ROI and ROE, and have license regimes already in place.

Main reasons for not financing the projects are:

1. • not in compliance with an aim and a scope of the EU fund;
   • or exceeds the budget of the programme;
   • and  lack of co-financing.

We find the relevant partner for a beneficiary (ministry, state body, municipality and business entity), in order to participate in the execution of the project. Normally it is a referenced consulting company, or specialized firm in a different sphere, it depends from the characteristic of the EU programme.

Participating in the trade period after a EU project has been realized.
For example:

1. • selling the product in different countries;
   • authorised rights;
   • manufacturing of already invented prototype, etc.

Any Investor can apply on his own for EU funding of his own projects, within the Balkans, CEE, SEE countries.

Normally these projects are in the sphere of:

1. • High end technology
   • IT
   • Healthcare
   • Agriculture
   • Energy and renewables, ect.

The investor has to secure 30% of the financing (maximum) for the project, as well as bank warranty for the balance (70%). This 70% is then fully covered by EU funds after adopting the project, because of this it’s not difficult to secure bank warranties for projects which have a guarantee for EU Funding. CalErin Advisory is well aware of the current  EU Funding programs, which allows potential clients a quick answer in regards to their projects suitability  to EU Funding.

We welcome the opportunity to discuss the suitability of your Projects for EU funding.