business & financial advisory€¦ · business and financial advisory services. raiscient pkc...

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Business & Financial Advisory

▪ Service Offerings

▪ Credentials

2Raiscient PKC Advisory

Strategy Consulting

▪ Strategy Formulation & Alignment

▪ Portfolio Review and Restructuring

▪ Feasibility Study and Business Plan

Procurement & Cost Management

▪ Procurement strategy and Analysis

▪ Procurement Technology and Assessment

▪ Strategic Cost management (Shared Services, Cost Optimization)

▪ Strategic Planning, Budgeting and forecasting

▪ Performance Analytics (KPIs, Scorecards, Dashboards)

▪ Diagnostic Review and Alignment

▪ Capital Management (Capital Structure, Working Capital)

▪ Rating and Debt Advisory

▪ Risk Analytics and Reporting

▪ Valuation Services (PPA, Impairment Testing)

▪ Investor Relation Support

▪ IFRS and VAT Consulting

Across buyside, Sell-Side, M&A and IPO transactions

▪ Investment Opportunity Assessment

▪ Financial Modeling and Valuation

▪ Transition Document (IM, Pitchbook)

▪ Business and Financial

Strategic Advisory Performance Enhancement Financial Advisory Transaction Support

BUSINESS AND FINANCIAL ADVISORY SERVICES


STRATEGIC ADVISORY

Strategy Formulation & Alignment

Our strategy formulation services help in articulating a clear strategy that can be cascaded to the business/ department level. Strategic alignment ensures that planned initiatives and processes are aligned with strategic business objectives.

Portfolio Review & Restructuring

We assist our clients in undertaking a thorough review and assessment of their investment portfolio, thereby recommending a strategic portfolio that delivers sustainable growth and creates value.

Feasibility Study

We undertake feasibility studies of new projects/ investments to provide internal and external stakeholders an assessment of the viability, benefits and associated risks.

Business Plan

We provide assistance to both large, mature and diversified businesses and to emerging and growing ventures to transform their strategic direction into a structured and integrated business plan.

Procurement Advisory

Our procurement advisory services are aimed at developing/transforming procurement by streamlining and standardizing processes to enhance transparency, drive continuous cost savings and mitigate risks.

Strategic Cost Management

We support our clients in their endeavor to optimize costs, improve performance and build sustainable competitive advantage thereby strengthening the overall strategic position of the organization.

We advise our clients on key strategic issues, leveraging on our industry knowledge and analytical rigor, to help them make informed decisions allowing them to capitalize on opportunities and being prepared to mitigate potential risks.

Our Credentials

Where we have added value..

✓ Facilitating strategy workshops, detailing the strategy, KPIs and business plan for a listed training & education company, an IT firm, a real estate company. structured finance company across GCC region

✓ Investment portfolio review and restructuring for a diversified business group in Saudi Arabia

✓ Feasibility study for establishment of an industrial gas processing plant for a family office in Kuwait

✓ Performance analysis, business planning and strategy formulation of various companies/divisions of a diversified investment holding group based in the KSA

✓ Study to recommend negotiating strategies with Tetra Pak for a dairy company based in the KSA, resulting in margin enhancement

✓ Analysis to identify potential cost savings with centralized procurement of services for a leading investment company


PERFORMANCE ENHANCEMENT

Our strategic planning services

enable clients to develop an

integrated, top-down strategic

plan and link it to a bottoms-

up financial and operational

plan that clearly lists activities

to achieve and track growth.

Our diagnostic reviews

provide a comprehensive

health check on operational

and financial performance of

the business which help in

identifying areas of concern,

underlying reasons and

corrective action plan.

Our performance analytics

services enable management

to introspect business

performance using well-

structured key performance

indicators, presented through

information rich scorecards

and dashboards.

Our capital management

services help clients gauge

long-term and working capital

requirements. Through tactful

planning and optimization, we

assist in meeting strategic

goals, liquidity requirements

while complying with

regulatory norms.

Strategic Planning, Budgeting & Forecasting

Diagnostic Review & Realignment

Capital ManagementPerformance Analytics

Our performance enhancement services are focused on providing management with ongoing business performance tools and metrics that can facilitate informed strategic and tactical decisions needed to achieve business objectives.

Our Credentials


✓ Identifying KPIs and designing management dashboard template for a real estate company in KSA

✓ Diagnostic review of business performance of various divisions of a leading financial services company based in Kuwait

✓ In-depth analysis of bad returns of a dairy & food stuff company to enhance the bottom line

✓ Working capital management for a diversified investment holding company in Saudi Arabia

✓ Development of framework for strategic planning and budgeting, hand-holding for implementation and periodic review for a contracting division of a family business in the KSA

✓ Assistance in fund raising (Tier-I/Tier-II instruments) with detailed analysis of pricing, preparation of prospectus and road show presentation


We help clients make informed business and

investment decisions by arriving at fair

valuations using alternate methodologies,

complex models and analytics and assessing

impact on various stakeholders.

We assist clients in developing an effective

Investor Relations strategy; and engaging in

a clear, consistent, ongoing communication

with investors, analysts, rating agencies and

other external stakeholders.

In the wake of regulatory changes, requiring

companies to converge their financial

reporting from local standards to IFRS; our

customized solutions assist clients in

adopting this change in an efficient and

seamless manner.

Our rating advisory services help clients

secure, maintain or position for a rating

upgrade from any of the major international

(S&P, Moody’s, Fitch) or regional rating

agencies.

Our debt advisory services assist clients

across the entire issuance cycle from

developing a capital funding strategy,

supporting in debt issuance and post

issuance monitoring and periodic review and

optimization of capital structure.

Our risk analytics and reporting services

help clients proactively manage their

exposures by providing them with a holistic

view of key risks and putting in place

necessary mitigants to ensure they are well

positioned to address risks and manage

growth.

Rating Advisory Debt Advisory Risk Analytics and Reporting

Valuation Services Investor Relations Support IFRS Consulting

Our financial advisory services provide diverse and comprehensive offerings that maybe driven by regulatory or transaction requirements. Our clients benefit from independent and practical advice relating to credit ratings, valuations, risk management and financial reporting.

Our Credentials


✓ Assistance in establishing, maintaining and supporting various issuances under a USD2bn EMTN program for a large diversified holding company based in Kuwait

✓ Rating advisory to a commercial bank in UAE and Kuwait

✓ Valuation assessment of a chain of fast food outlets in KSA for an envisaged corporate reorganization

✓ Regional and international benchmarking analysis of risk parameters for a prominent commercial bank in Turkey

✓ Deal roadshow support including formulating appropriate equity/debt messaging, developing presentation, query handling for a regional telecom company headquartered in Kuwait

✓ Program management for a diversified holding company in Kuwait for their IFRS reporting

FINANCIAL ADVISORY


What do we offer..

Opportunity AssessmentWe conduct detailed opportunity assessments factoring in strategic objectives, key drivers of the underlying business, analyzing viability through flexible financial models and identifying potential risks.

Financial Modeling and ValuationWe prepare dynamic and comprehensive financial models that facilitate decision making. Our models incorporate complex business situations, possible risks and alternate scenarios that help predict outcomes and identify optimal choices.

Transaction DocumentationWe assist our clients in preparation of transaction related documents such as Investment Teaser/ Pitch Book, Investor Presentation, Information Memorandum (IM) that effectively communicate with the various market participants.

Due DiligenceOur due diligence focuses on analysis and validation of all financial, operational and strategic aspects of a transaction. It brings out the key strengths and areas of concern/ risks associated with the underlying transaction.

Program ManagementWe provide program management support to our clients including evaluation of partners, valuation, due diligence, transaction related documents, deal structuring and analysis, data room support and assistance in road shows.

Our Credentials


✓ Due diligence and valuation of a restaurant in UAE and beauty clinic in KSA for a potential acquisition

✓ Preparation of PPM, teaser and financial model for a chain of Green-field KG school projects in KSA

✓ Preparation of information memorandum for a manufacturing company based in Kuwait

✓ Valuation, Due Diligence and Program Management in a potential merger of two banks in Bahrain

✓ LBO based financial modelling, valuation and impact on shareholder returns for a healthcare company in Kuwait

✓ Program management for selection of hedge fund investment advisor for a large conglomerate in Kuwait

✓ Financial due diligence for a Restaurant in UAE for a leading Technical Services Company in the KSA

Be it sell-side, buy-side, M&A or an IPO transaction, we support our clients across the entire life-cycle of the transaction or on any specific component thereof. With an optimal blend of off-shore and on-shore execution, our clients benefit from our value for money support during the transaction.

TRANSACTION SUPPORT


Our Client

A listed training and education Company based out of SaudiArabia.

The Business Situation

The Client wanted assistance in facilitating strategic planningprocess and detailing the new strategy along with KPIs andbusiness for next 5 years.

Our Role

The scope of engagement included reviewing the business model

and developing the business plan and strategy for 5 years, along

with undertaking the market study of the current and proposed

business areas.

Raiscient PKC Advisory adopted a stage-wise approach for themandate. Stage I involved gaining an understanding of the overallvision,

current business operations and strategy through interactions with

senior management. Stage II involved undertaking a workshopwith the senior executives to brainstorm potential businessopportunities and growth areas. Stage III involved detailing thestrategic direction and working out the KPIs for all functions andpreparing a business plan for implementation.

The Value We Added

A detailed strategy, KPIs and business plan presented by RaiscientPKC Advisory to the client followed by an implementation planassisted the Client in setting-up the future direction and drivingthe business forward.

Facilitating strategy workshops, detailing the

strategy, KPIs and business plan for a training and

education company

Our Client

A diversified business group in Saudi Arabia.


The Client had a portfolio of around 25 investments, majority ofwhich were unlisted and wanted to undertake detailed analysisand valuation of each of these investments. The objective of theassignment was to provide recommendations on restructuring theportfolio appropriately for maximizing future growth.

Our Role

The scope of work entailed undertaking financial analysis of eachof the investments and providing recommendations forrestructuring including stake increase, partial or full divestment,indicative timing of exit, etc. Raiscient PKC Advisory carried outvaluation of each of the investment using various valuationmethodologies such as Sum of the Parts Valuation, DiscountedCash Flow Approach and Relative Valuation. A detailed report wasprepared for each investment highlighting the key investmentpositive and risks after analyzing the company, competition andindustry prospects amongst other factors along with apresentation on overall portfolio analysis and recommendations.

The Value We Added

The deliverables included a presentation covering the overallportfolio level restructuring recommendation as well as 5 yearfinancial projections for the investment division, which assistedthe Client in restructuring its investment portfolio.

Investment portfolio review and restructuring for a diversified business group

Our ClientAn associate of leading contracting and trading company inKuwait.

The Business SituationThe Client was considering opportunities in processing of aparticular industrial gas released by large industrial units to bemade re-usable by industrial and commercial customers. For thispurpose the Client intended to set up an industrial gas recoveryand processing plant and approached Raiscient PKC Advisory toprepare a detailed feasibility report with financial viability analysisof the plant.

Our RoleRaiscient PKC Advisory’s scope of work included a study of thehistorical and current status of business lines/ products offered bythe Client to develop an understanding of the current businessscenario, assessment of the new opportunity and Client’spositioning viz-à-viz its competitors.Based on detailed interactions, Raiscient PKC Advisory understoodmanagement’s thoughts on the proposed business model,envisaged scale of operations, future growth potential, expectedconstraints, fund sources and deployment.A feasibility report including financial projections was prepared toanalyze commercial viability for setting up the industrial gasprocessing plant.

The Value We AddedThe detailed feasibility report and financial model was used by theClient to evaluate the financial attractiveness of the project fromthe point of view of both debt and equity investors.

Feasibility Study for a Greenfield Industrial Project

CASE STUDIES


Our Client

A Food Company based in Saudi Arabia.


Raiscient PKC Advisory was mandated to identify the problem

areas and recommend directives/ actions that can help minimize

“bad returns” for its food products. The objective of the

assignment was to facilitate understanding of the “sales and stock

returns” and enable cost optimization and margin enhancement.

Our Role

▪ We carried out a comprehensive qualitative and a quantitative

analysis post a detailed discussion with all the stakeholders to

understand the nature, quantum and genesis of the “bad

returns”

▪ A comprehensive study of the Clients supply chain process was

undertaken including the study of areas along the value chain

with high potential for damage

▪ A detailed quantitative analysis at product level, SKU level,

depot level and channel-wise level was carried out to provide

Client with better understanding of the origin of “bad returns”

The Value We Added

We developed a detailed action plan (short term to long term)

which included the policy improvements and potential strategic

decisions that could help reduce the level of “bad returns” going

forward. The strategy and action plan were adopted in the short to

long term which finally resulted in the improvement of its margins.

In-depth analysis of bad returns of a food processing company to enhance the bottom line

Our Client

A leading real estate company based out of Saudi Arabia.


Client approached Raiscient PKC Advisory, seeking its assistance inidentifying KPIs for departments/ Company and designing themanagement dashboard template, which can be used by Client’sTechnology partner to integrate into their existing ERP system.

Our Role

Raiscient PKC Advisory adopted a stage-wise approach for takingthe mandate forward. Stage I involved discussion withManagement/ GMs to understand the strategic objectives, criticalsuccess factors & current KPI’s being tracked for eachdepartment/ Company. Stage II involved identifying relevant KPIsfor each department/ Company, based on management inputsand Raiscient PKC Advisory’s prior experience. Stage III involveddesigning dashboard templates based on the KPI’s finalized inprevious stage, which was then used by Client’s Technologypartner to integrate/ implement into their existing ERP system.Stage IV involved audit of the numbers/ calculations in thedashboard to ensure accuracy and completeness, after the Client’stechnology partner had implemented the same in the ERP.

The Value We Added

Raiscient PKC Advisory assisted Client in developing ERP basedinteractive dashboards based on meaningful & easily trackableKPI’s, which helped in tracking & monitoring performance of eachdepartment as well as the overall Company.

Identifying KPIs and Designing Management Dashboard Template for a Real Estate Company in KSA

Our Client

A leading financial services company based in Kuwait.


The Client mandated Raiscient PKC Advisory for diagnostic reviewof its business performance. The study was aimed at an in-depthassessment of its current performance and future prospects. TheClient was looking to engage an external consultant with strongunderstanding of its businesses and Raiscient PKC Advisory hadthe desired expertise and experience.

Our Role

The scope of work included review of organizational structure &mapping of resources across key divisions (Asset Management,Investment Advisory, Financial Services & Research), gaining an in-depth understanding of current operations and performance ofvarious divisions through assessment of quality of earnings of keydivisions, identification of key strengths & weaknesses, review ofkey expenses & functions, analyzing the impact of ongoingrestructuring on the balance sheet & revenue stream andcompetitive benchmarking of key revenue streams.

The Value We Added

A diagnostic presentation detailing each of the aspect ofdiagnostic review, business performance of various divisions andcompetitive benchmarking was submitted to the management.

Diagnostic review of business performance of various divisions of a large financial services company

CASE STUDIES (CONTD..)


Our Client

A diversified investment holding company in Saudi Arabia.


The Client had subsidiaries in the trading sector under its holding,which had longer working capital cycle. The trading sector wasstriving to reduce the working capital cycle as a result of which theCFO wanted to implement an effective inventory managementsystem and develop a credit limit criteria for the customers.Raiscient PKC Advisory was mandated to assist the CFO in thisregard.

Our Role

The Client had approached Raiscient PKC Advisory to develop afinancial model for the inventory and debtors management. Thescope of the work involved a) Preparation of a flexible financialmodel for automated inventory management and b) To develop acredit limit criteria & methodology for the customers.

Raiscient PKC Advisory also conducted a workshop for the finance& supply chain department of the trading companies for theeffective implementation of the system.

The Value We Added

The assistance provided by Raiscient PKC Advisory enabled theClient in reducing its working capital cycle, improving its overallliquidity.

Working capital management for a diversifiedinvestment holding company in Saudi Arabia

Our Client

A leading investment holding company in Kuwait.


The Client was establishing its USD 2 billion EMTN program andengaged Raiscient PKC Advisory to assist in the same.

Our Role

Raiscient PKC Advisory's assistance was mainly in the followingactivities:

▪ Selection of Investment Banks: Raiscient PKC Advisory wasinvolved in the selection of investment banks by way ofparticipation in beauty-parades, evaluation of proposalssubmitted by banks and providing market updates on therecent happenings

▪ Documentation: Preparation of preliminary prospectus andother documents and co-ordination with auditors and legalcounsel for documentation purpose

▪ Due Diligence: Assisted in both business and legal due diligencealong with preparation of data room, responses to queries, etc.

▪ Road show: Preparation of road show presentation and off-sitesupport by addressing investor queries

▪ After the first tranche of USD500 million debt was raised, wehave been involved in the establishment and annual update ofthe EMTN program and raising debt under this program

The Value We Added

The services provided by Raiscient PKC Advisory helped the clientin successfully completing the issue. The deliverables provided byRaiscient PKC Advisory were utilized at various stages of the debtissuance.

Assistance in establishing a US$2 billion EMTN Programto a large diversified holding company

Our Client

A leading commercial bank in Kuwait.


Post acquisition, the Client’s risk-adjusted capital ratio declinedsignificantly below the rating threshold, leading to the possibilityof a rating downgrade.

Our Role

Raiscient PKC Advisory carried out a comprehensive study of theapplicable rating methodology, involving:

▪ In-depth analysis of the financial performance and asset qualityof the client; benchmarking against peers

▪ Detailing a capital plan highlighting the strategy to get back tocomfortable capital levels in next 2-3 years

▪ Identifying the gap in sovereign support benefit that the Clientdeserved vis-à-vis what was given by the rating agency

▪ Highlighting other key strengths like robust liquidity levels anddiversified asset base/ loan portfolio

Raiscient PKC Advisory also assisted the Client in addressingqueries during and post rating meeting.

The Value We Added

The optimal rating positioning enabled the Client maintain itsinvestment grade rating.

Rating advisory to a commercial bank



Our Client

A UK based restaurant chain with outlets across categories such asfine-dining, casual dining and quick service categories in the UK,KSA and UAE.


The Client had 13 company owned and 4 franchise outlets in KSA.The Client was contemplating a transfer of all these outlets into amaster-franchise arrangement in order to facilitate rapidexpansion of its outlets without constraints of foreign ownership.The Client wanted Raiscient PKC Advisory to assess the valuationof Company owned and franchise outlets for sale to master-franchisee.

Our Role

Raiscient PKC Advisory provided assistance to Client’smanagement in assessing the value of the company owned andfranchise outlets in KSA. This involved preparation of 5-yearfinancial forecasts including adjustments to margin profile due toproposed re-organization. An indicative valuation of the Companywas then carried out based on intrinsic and relative methods ofvaluation.

The Value We Added

Raiscient PKC Advisory provided a valuation assessment note forthe fast food chain which assisted the Client in moving ahead withits proposed re-organization exercise.

Valuation assessment of a chain of fast food outlets inKSA for an envisaged corporate reorganization

Our Client

A large business conglomerate based in Kuwait.


The objective of the assignment was to assist the Client inevaluating investment opportunity in a multi-specialty hospital inIndia.

Our Role

Raiscient PKC Advisory undertook site visit to meet themanagement and reviewed the facility. Thereon a detailed studyof the healthcare and hospital sector in India was performed,covering key growth drivers & risks influencing hospital sector,entry options for new players, key highlights of recent deals andgrowth path of corporate hospitals. Based on the secondaryresearch and meetings with management, Raiscient PKC Advisorydeveloped an understanding of the KPIs of the sector and afinancial model for arriving at an indicative valuation of thehospital.

The Value We Added

Raiscient PKC Advisory prepared a presentation covering its studyand recommendation which highlighted outlook for the Indianhealthcare sector and key opportunities & risks in operating in thissector. This assisted the Client in taking an informed decision.

LBO based financial modelling, valuation and impact onshareholder returns for a healthcare company

Our Client

A Food processing company based in Saudi Arabia.


As part of its growth plans, the Client was considering acquisitionof controlling stake in an Egypt based vegetable and fruitprocessing company (“target”). The investment was expected toyield vertical integration benefits for the Client by providing rawtomato paste for its Tomato Pastes & Ketchup portfolio.

Our Role

▪ The Client had approached Raiscient PKC Advisory to undertakefinancial analysis of the target and prepare a valuation reportindicating the intrinsic value of the Company

▪ The scope of the work involved undertaking financial analysisof the target, indicating its intrinsic value, consolidating theDue diligence findings and drafting a business plan for theTarget

▪ Intrinsic value was determined using DCF analysis andReplacement Value methods. We also evaluated the costbenefits (value accretion) due to in-house production of rawtomato paste

▪ Raiscient PKC Advisory also helped the Client in conducting aworkshop to finalize the business plan for the target

The Value We Added

Our investment evaluation provided the Client with an in-depthunderstanding about the Target’s business, thus facilitating inmaking an informed investment decision.

Preliminary assessment and valuation for acquisition ofvegetable processing company in Egypt



Our Client

An investment management company in KSA.


The Client was seeking to raise funds from a consortium ofinvestors for setting up a chain of Green-field KG school projects inKSA. In this regard, it had mandated PKC to prepare collateraldocuments along with financial model.

Our Role

Raiscient PKC Advisory prepared a detailed Private PlacementMemorandum covering key aspects such as company background,economic overview, industry analysis, academic collaborations,regulatory landscape, competitive positioning, goals andstrategies, cost and deployment schedule, financial projections,key risk factors and mitigants. A financial model was prepared toevaluate project returns and ascertain the amount of fundingrequired. PKC also prepared an Investment teaser presentationbased on the PPM.

The Value We Added

The Private Placement Memorandum prepared by Raiscient PKC Advisory provided single point compilation of all the relevant information for the investors which was to be used by the Client in fund-raising process.

Preparation of PPM, Teaser and financial model for achain of Green-field KG school projects in KSA.

Our Client

A leading Investment Company based in Kuwait.


The Client had secured a mandate from an Industrial Group inKuwait for an equity transaction for divestment through privatestrategic sale. The client wanted PKC to prepare an InformationMemorandum and teaser presentation which could be sharedwith prospective investors.

Our Role

PKC prepared a detailed Information Memorandum whichincluded company background, business areas, economicoverview of existing and target geographies, industrycharacteristics, competitive positioning, corporate goals andstrategies, key risk factors and mitigants, and financial projectionsand valuation. PKC also prepared an Investment Teaserpresentation based on the Information Memorandum.

The Value We Added

The Client did not have the bandwidth to complete the project attheir end. PKC assisted the Client in preparing the detailedInformation Memorandum allowing the Client to focus onidentifying potential investors for this opportunity.

Information Memorandum for a manufacturing company

Our Client

A leading Financial Services Consulting firm based out of UAE.


The Client was approached by an Islamic wholesale investmentbank based out of Bahrain to assist it in a proposed mergertransaction with another Islamic retail bank based out of Bahrain.In this context, the Client wanted PKC to program manage thetransaction during financial due-diligence phase and carry out anindependent assessment/ valuation of the counterparty.

Our Role

The overall objective of the assignment was to assist the Clientduring the financial due-diligence phase and subsequentnegotiations. The scope of work involved reviewing the businessplans/ prospects of all the group companies as well as investmentsand to build a sell-side case for a mutually appointed third partyvaluer to carry out valuation of both parties. In addition, anindependent valuation of the counterparty was carried out toprovide the Client an alternative reference for negotiations. PKCwas responsible for creating and managing the virtual data-room,handling of queries, meetings and discussions with the externalparties involved in the transaction.

The Value We Added

PKC clearly brought out the key value propositions of thebusiness/ investment companies in front of the external valuerand prepared a detailed valuation model and note on thecounterparty based on which the negotiations were carried out.

Valuation, due diligence and program management in apotential merger of two Islamic banks in Bahrain


Email : [email protected] Website : www.raiscientpkcadvisory.com

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business & financial advisory€¦ · business and financial advisory services. raiscient pkc...

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