Corporate Advisory

TresVista provides advisory services to corporates, entrepreneurs, and portfolio companies; enabling them to streamline their operations, evaluate growth opportunities and exit opportunities, and raise growth capital.

CFO Office Services

TresVista works closely with CFOs by building and maintaining flexible models to support internal budgeting and reporting criteria, and assisting management in evaluating additional projects and investment opportunities. These services support the CFO in shaping the finance department to handle day to day operational control, enabling shifting their own focus to a more active role in the macro aspects of the business to facilitate strategy execution.

Review and Monitor Operational Metrics
– Working Capital Optimization
– Benchmarking
– Sensitivity Analysis
Modeling
– Financial Modeling
– Budget Modeling
– Operational Modeling
– Make vs. Buy Outputs

Reporting
– Prepare Board Material
Enable Internal Decision Making
– Provide Support with Relevant
 Analysis, Ensuring Investment
 Returns Criteria

Request & Guidelines Provided
  • Asked to support the CFO in building a flexible and detailed model to support internal budgeting and reporting criteria
  • Provided with a copy of a complex but rigid model built by the CEO from an operation standpoint
Methodology
  • Prepared a simple and flexible quarterly model including a detailed breakup of revenue and cost drivers based on an in-depth understanding of the operations and interactions with the CFO
  • Enabled maintenance of the model by updating assumptions for key drivers for the projected budget
  • Created output sheets to analyse various industry-specific metrics
  • Assisted in the creation of charts using the financial model, for presentation to stakeholders
Final Deliverable & Client Takeaway
  • Delivered a detailed and flexible budget model to support the budgeting function of the company. The model is used as a base by the finance department and is uploaded into the system to generate reports
  • Supported the CFO by creating, maintaining, and updating the model, and enabled the company to have a lean finance team while relying on TresVista for support

Identifying and Evaluating Growth/Exit Opportunities

TresVista provides advisory services that include but are not limited to the evaluation of growth opportunities, raising funds for expansion/acquisitions, M&A mandates, and advising on cross-border joint ventures.

Assessing Growth Opportunities
– Evaluating Expansion
– Alternatives
– Landscaping
– Profiling Potential Acquisition
– Target Companies
– Business Plan

Modeling
– Financial Modeling
– Operational Modeling
– LBO Modeling
– Transaction Analysis
Research
– Macro Economic Research
– Regional Overview
– Industry/Market Analysis
Deal Evaluation and Transaction Structuring
– Capital Structuring
– Covenant Monitoring
– Sale/M&A Implications
– Affordability Analysis

Request & Guidelines Provided
  • Asked to support the CEO to help evaluate a potential joint venture with a US based chemical company to vertically integrate the company product line and resell it globally
  • Provided with a raw monthly model on the company
Methodology
  • Conducted due diligence related to operations, funding, management, capital structure etc. of the US based company
  • Evaluated the effect of purchase of new PP&E on cash flows
  • Changed assumptions of foreign entity by adding local expertise regarding operations in India
  • Built a monthly model on the client’s company with post merger impact
  • Included macros and cases based on the key assumptions such as cost of basic raw material, hours/ laborer, no. of shifts etc.
  • Sensitivities with regards to break even analysis was conducted
  • Cash burn and cumulative cash inflow/outflow was calculated for all cases
  • Understood the technical intricacies of the chemical business along with the purpose of the merger to build the Investment Memorandum
Final Deliverable & Client Takeaway
  • Provided clarity to the client on the viability of the joint venture
  • Advised against entering into joint venture based on final analysis

Fund Raising and M&A Advisory

TresVista provides advisory services that specifically address the fund raising process and M&A activity.

Environment Analysis
– Funding Environment Review
– Precedent IPO and Listing
Analysis
Modeling and Valuation
– Financial Modeling
– Public Market Valuation
– Precedent Transaction
– Discounted Cash Flow

Presentation Creation
– Prepare the Investment
Memorandum / Red Herring
– Business Due Diligence

Transaction Analysis
– Transaction / Capital Structure
Analysis
– Returns Analysis

Request & Guidelines Provided
  • Asked to support the CEO and Founder of the company in selling a majority stake or the entire interest in the business
  • Provided with financial and operational information of the company
Methodology
  • Compiled an exhaustive due diligence questionnaire and conducted detailed one-on-one meetings with the CEO/Founder and key personnel
  • Constructed a detailed model incorporating the historical and projected financial information on the company and its divisions
  • Arrived at a valuation range for the company by considering industry trading public comparables and precedent transactions, and discounting free cash flow projections
  • Created a detailed Investment Memorandum that included a summation of the due diligence and a comprehensive overview of the company, industry, and macro-economic scenario
  • Mapped out key risks underlying the business as well as the mitigating factors, along with highlighting indicators that reinforced the investment rationale
Final Deliverable & Client Takeaway
  • Delivered a comprehensive Investment Memorandum, valuation range for the company – reinforced by a financial model and market analysis, and advisory services to support the capital raising process
  • Provided strategic advice with regard to timing of stake sale. Enabled the CEO/Founder take an informed decision to delay sale under current market conditions and await market improvement to enhance returns on exit

Deal Execution

TresVista provides vital and specialized services to support the fund raising/deal execution process, which is often a long and complex process, absorbing a significant amount of management time. Senior management is provided with requisite research and guidance during the process, enabling them to focus on running the road show and interacting with investors.

Identify Investors
– Identify Potential Investors
(Strategic and Non-Strategic)
– Prepare and Maintain Investor
Database

Road Show Support
– Preparing Management for
Investor Meetings
– Enabling Due Diligence
– Managing Data Room

Documentation
– Create and Update the Road
Show Presentation
– Creating and Distributing
– Teaser

Transaction Advisory
– Term Sheet Evaluation
– Covenant Monitoring
– Financial Advisory
Request & Guidelines Provided
  • Asked to support the CFO in evaluation of potential lenders for debt refinancing and acquisition of new markets
  • Provided with the term sheets and financial information of target markets
Methodology
  • Built a detailed and flexible model incorporating the financial information of potential targets to show the projected consolidated financial position of the company
  • Created a detailed transaction tab with easy to use switches, covering various terms of the deal such as stake purchased, purchase price, repayment schedules etc.
  • Modeled, evaluated, and reviewed the term sheets provided by different potential lenders by running the conditions through the model
  • Created an output sheet to scrutinize performance of the company as against the covenants placed by potential lenders
  • Tested the model to ascertain worst case scenarios and identify the margin of safety available to the company
  • Assisted in the creation of charts using the financial model used in the investment memorandum for presentation to existing investors and potential lenders
Final Deliverable & Client Takeaway
  • Provided a detailed flexible financial model with transaction tabs and output sheets to enable evaluation of the debt refinance and acquisition scenarios
  • Enabled the CFO to focus on running the deal and selecting the best term sheets presented to the company