Based on a TIDS analysis of market, sourcing and investment opportunities, Koios can help you determine whether an acquisition or joint venture makes strategic sense as opposed to a greenfield investment or an arm’s length contracting, agency or distribution agreement. Needless to say, customary accounting standards don’t always apply, and credit ratings, if they exist, are of uncertain reliability. Koios can help you evaluate the standing, competence and creditworthiness of a potential acquisition or J.V. partner. Using public and proprietary information, local legal and accounting partners, and proven investigative techniques, Koios financial experts can help you value and negotiate an acquisition or merger. Due Diligence and ValuationOne of the keys to success in emerging markets is to know your partners. Koios experts are skilled in evaluating the commercial reputation, management skills and financial strength of potential acquisitions, joint venture partners or key commercial contacts. Company valuation presents unique challenges in emerging markets in which reliable financial information is unreliable or unavailable, equity markets are nonexistent or thinly traded, interest rates and exchange rates are not market-determined, and country risk is high. Koios has a vast reservoir of experience conducting financial analysis, due diligence and valuation of companies and transactions in such environments. Koios experts know how to look behind the financial statements to discover the reality. We have advised companies trying to evaluate direct investments or acquisitions in emerging markets, we have advised emerging market companies on how to price themselves to potential investors, and we have concluded successful transactions on clients’ behalf.
Financing and Risk Management Strategies
Access to finance is a challenge in many emerging markets. Koios experts have direct experience with commercial and investment banks, development banks, multilateral financial institutions, investment funds, and export and investment insurance agencies, and can help you raise equity capital, long-term loans, working capital and trade finance, and can help you protect yourself from political, economic and commercial risk.
Privatization is often the best way to enter an emerging market, as governments open the capital of state-owned enterprises to private and foreign ownership. Koios experts have experience on both the sell-side and the buy-side of privatization transactions. We can help clients identify and value potential investments in companies being privatized and can provide post-privatization assistance in financial and management restructuring, strategic integration into corporate structures, change management, government relations, work force reductions, and sales and marketing strategies. We also advise governments on privatization strategies and as transaction advisors in sale of state-owned enterprises.