The Transaction Advisory team supports banks and other financing institutions in assessing the financial position of their existing and potential borrowers. The offer also includes lender assistance services, i.e. support to lenders starting with analysis of the financial position, analysis of business plans and analysis of working capital requirements, through analysis of the borrower's market position, its tax situation, and analysis of the borrower's operational activities.
KPMG advisors also provide a comprehensive range of support in the process of companies going public on the stock exchange (IPO), which depends on the stock exchange and local regulations. In addition, experienced experts also support companies and financial institutions in carrying out the process of securitization of selected assets (debt portfolio).
We support financing banks and other institutions in their assessment of the financial performance of the borrowers on the following stages of the financing process:
- Before provision of financing
- In the course of the credit monitoring process
- During restructuring of financing.
Our lender due diligence assistance services include:
- Analysis of prospective borrower’s financial position and performance as well as cash flows prior to provision of financing
- Budgeting accuracy based on historical budgets and variances between budget and actual results
- Analysis of working capital requirements and its seasonality
- Analysis of the cash level projections and cash requirements in the financing period (including ability of the financing repayment)
- Periodical analysis (monitoring) of borrower’s financial position and performance as well as cash flows in the financing period
- Periodical analysis (monitoring) of borrower’s projections (including profit and loss account and cash flows)
- Assessment of borrower’s market position
- Analysis whether debt covenants stipulated in credit agreements are met
- Identification of assets that might potentially be sold for the purpose of repayment of the financing
- Identification and estimation of other significant commitments and contingent liabilities that might endanger financial performance or otherwise adversely affect the borrower's financial position
- Analysis of borrower’s tax position and tax optimisation scenarios
- Operational due diligence of the borrower.
Initial public offering (IPO)
We can provide a wide range of assistance; in particular:
- An initial assessment of the company's suitability for listing by undertaking a 'pre-float review' to help determine whether the company meets relevant regulatory requirements, as well as identification of other potential issues. The review can also be used to establish a plan of action to prepare the company for its IPO (“Pre-IPO assessment”)
- Assistance in maximising IPO valuation by preparing a comprehensive report on the business supported by a credible financial track record (“Long form report”)
- Advice on effective corporate governance and internal procedures to control business risk by benchmarking proposed procedures against best practice, reassessing information technology strategies and ultimately, for public offering, assuring IPO sponsors on the adequacy of the systems of reporting and control (“Long form report”)
- Assessment of forecasted working capital requirements for the purpose of required statement by the management in the prospectus that the company has sufficient working capital for its present requirements (“Working capital report”).
Our support primarily focuses on the following areas:
- Assistance in the extraction of the debt portfolio designated for sale from the overall debt portfolio owned by the bank or company
- Assistance in preparing certain statistics and summaries related to the debt portfolio designated for sale
- Review of the selected debt portfolio in order to:
- Assess the completeness of documentation
- Analyse the debtor scoring performed by the bank or company
- Analyse collaterals
- Analyse historical debt repayment
- Analyse debt classification (normal, watch, substandard, doubtful, lost) (applicable for banks).
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