EXCLUSIVE BRANDS
Capital. Strategy. Opportunity.
The cost of capital, liquidity conditions, interest rates, credit availability and investor sentiment can influence how businesses finance operations, deploy reserves, pursue acquisitions and prepare for future growth.
THE CORPORATE CAPITAL ENVIRONMENT
Understanding the Conditions Around Business.
Companies operate within a constantly changing financial environment.
Interest rates influence borrowing costs. Credit conditions affect access to financing.
Currency movements influence international revenues and expenses.
Investor expectations affect valuations. Economic conditions influence demand.
Capital markets determine how readily businesses can access external funding. Understanding these relationships can help management teams make more informed financial decisions.
CORPORATE LIQUIDITY
Financial Flexibility Has Value.
Liquidity provides companies with options.
It supports operations during difficult periods and allows management to respond when opportunities emerge. Yet excessive idle liquidity may also represent capital that is not being used efficiently.
The challenge is balance.
Contingency Liquidity
Resources maintained against unexpected circumstances.
Operating Liquidity
Capital required for normal business activity.
Strategic Liquidity
Capital reserved for acquisitions, investments or other future opportunities.
Investable Reserves
Capital that may have a sufficiently long horizon to be considered within an appropriate investment strategy.
EQUITY CAPITAL
Ownership Has a Cost Too.
Equity does not require contractual repayment in the same way as debt. But it carries its own economic cost. Issuing new equity can dilute existing ownership.
Investor expectations can influence strategic decisions.
Market valuations can determine whether raising equity is attractive or expensive. Our capital-markets perspectives consider the relationship between corporate fundamentals, market valuations and access to equity capital.
For management teams, the objective should not simply be to raise capital. It should be to raise the appropriate capital under appropriate conditions.
PRIVATE CAPITAL
Capital Beyond Public Markets.
Businesses increasingly have access to financing outside traditional public markets.
Private equity. Private credit. Family offices. Institutional investors. Specialist investment funds. Strategic investors.
These sources can provide flexibility, but they may also introduce different expectations around governance, returns, security and control.
Our perspectives examine how private capital is influencing corporate financing and the wider relationship between companies and financial markets.
The source of capital matters.
MERGERS & ACQUISITIONS
Transactions Should Create More Than Activity.
Acquisitions can accelerate growth. They can provide access to new markets, capabilities, customers or assets. They can also destroy significant value when undertaken without sufficient discipline. The availability of financing, prevailing valuations and economic conditions can materially influence transaction activity.
TREASURY STRATEGY
Managing Capital Between Decisions.
Corporate treasury sits at the intersection of operations, liquidity and financial markets.
Treasury decisions can influence how efficiently capital moves through an organisation and how effectively financial risks are managed.
Our perspectives consider areas such as:
Cash Management
Understanding the liquidity required across the organisation.
Currency Exposure
Managing financial implications arising from international operations.
Interest-Rate Exposure
Considering how changing borrowing costs may affect the business.
Corporate Reserves
Determining how capital not immediately required for operations should be positioned.
Counterparty Exposure
Understanding where corporate capital is held and with whom.
