Exes

FINANCE

Finance is the fuel required by businesses.

Our main services

We assist companies to raise finance from financial institutions, investors and the local government. We also offer advice on selected private company investments and selected property investments.

Our main services are

Raising Finance
Loan Restructuring
Mergers and Acquisitions
EU / Government Grants
Company Formation in Cyprus, Greece, UK, Dubai and Egypt
Investments in Private Companies
Investments in Real Estate

I. RAISING FINANCE

DESCRIPTION

The new regulations by the European Central Bank (ECB) provide specific information that is necessary for any bank to provide loans to businesses. The amount of information that is required has increased considerably and the focus has shifted from guarantees to repayment ability.

BENEFITS

Raising finance allows companies to invest and grow their business (e.g. develop new products, expand their production capacity)
Raising finance helps companies to enter new markets
Raising finance may also support companies’ operational needs on a daily basis

At EXES we have worked with numerous banks not only locally but also internationally to raise new finance for companies. Our partners have assisted companies to raise finance for more than 25 years and amount of finance raised exceeds 500 million in three countries.

Results:Raised finance for a company to set up a second production line

The Challenge

This international company was a leading producer of personal hygiene products. In the last two years the factory operated at almost full capacity and the company wanted to increase production and sales. The Board of Directors asked for our assistance in securing finance in order to set up a second production line within the existing factory building.

Our Solution

Our company prepared a five year Business Plan for the company after taking the following steps:

Market and competition analysis
Discussions with the company’s Board of Directors
Interviews of top managers
Financial, operational and sales analysis

The Business Plan was presented to the Board and it was approved. Following the internal approval, we prepared a letter to the bank requesting a new loan for the set up of the second production line and a small increase in the overdraft facilities to be used as additional working capital.

Punch line

Obtaining new loans enabled the company to set up a second production line and double its sales.

Results delivered

The company’s request was approved and the company was able to set up a second production line. The additional working capital assisted the company in funding the increased working capital required primarily for purchases of raw materials.

II.LOAN RESTRUCTURING

DESCRIPTION

Loan restructuring is a process used in order to allow businesses with outstanding debt obligations to alter the terms of the debt agreements. Thus companies may avoid default on existing debt or take advantage of a lower interest rate. Companies can also restructure their debt by extending payment period and/or other payment terms.

BENEFITS

Restructuring a company’s debt allows to save and protect valuable assets
Loan restructuring provides valuable time for a company’s recovery
Loan restructuring allows companies to agree an affordable plan of payments without stretching their cash flow

At EXES we have extensive, on hands & successful experience in loan restructuring in many industry sectors, in Cyprus, Greece and the UK. Our partners can assist you in preparing a recovery plan, negotiate with your financial institution and help you in successfully implementing it.

Results:Loan Restructuring for a leading cleaning products and services company

The Challenge

This family company was a leading cleaning products and services company specialising in industrial clients and municipalities. In the last twelve months prior to our involvement, the company has experienced a 22?crease in sales resulting in problems with its cash flow. The Board of Directors’ main concern was the inability of the company to service its loans of €12mn. As a result, the bank placed considerable pressure on the company and the owners (who guaranteed the loans in the first place) to cover outstanding instalments and provide additional guarantees. The Chairman asked us to renegotiate the loans with the bank and, if possible, obtain additional working capital.

Our Solution

Our company prepared a five year Business Plan for the company after taking the following steps:

Market and competition analysis
Discussions with the company’s Board of Directors
Interviews of top managers
Financial, operational and sales analysis

The Business Plan was presented to the Board and it was approved.

Based on the Business Plan we have prepared a proposal to the bank with new loan terms and a request for additional working capital. The negotiations with the bank lasted for two months and eventually our request was approved. The shareholders have also assisted the company by providing additional funds through an increase in share capital.

Punch line

Restructuring the company’s loans allowed it to return to growth and enter three new markets within five years.

Results delivered

The company’s loans were re-negotiated and the company was able to service its loans on time. The additional working capital assisted the company in returning to growth and within five years it has expanded its operations in two Balkan countries and Cyprus.

III. MERGERS & ACQUISITIONS

DESCRIPTION

The decision to embark upon an M&A transaction requires careful planning and consideration. Business buyers should assess the strategic fit of a business and identify synergies before acquiring a company. Business sellers should prepare their business for sale and understand the value of their business using internationally accepted valuation methods.

BENEFITS

The process of M&A adds value to the combined new entity that it could not be created by each individual company.
M&A offers a great opportunity to enter a new market that could not be reached otherwise.

At EXES we have been successfully involved in more than 40 Mergers & Acquisitions projects both locally and internationally.

Results:Acquisition of a specialist Tour Operator

The Challenge

The Group specialised in tour operating from the UK primarily to Greece and Cyprus. However, its strategy required the addition of more destinations to its holiday offering so it was looking to acquire a specialist tour operator to Spain. The CEO has asked us to prepare a short list of potential target companies for acquisitions and recommend tour operators that present the best fit to the Group.

Our Solution

Our company prepared an analysis of the tourism market from the United Kingdom to Spain and identified both the key players as well as the smaller specialist companies. The specialist companies were analysed in more detail and two companies were selected that formed the nest strategic fit.

The results of our analysis were presented to the Board of Directors and the Board authorised us to approach the two acquisition candidates. Following the approval, we approached both companies and started initial negotiations. Within one month one of the companies was selected as the best fit for the group and we intensified our negotiations. This company offered holiday packages not only for Spain but Portugal as well.

Our negotiations went well and both parties signed a ‘Heads of Agreement’ contract indicating their intention to proceed with the acquisition, the amount initially agreed and other important terms.

The contract was followed by the financial and legal Due Diligence process and we have completed the Commercial Due Diligence. The Due Diligence process led to the re-negotiation of the consideration (amount payable) and some other contract terms.

Following the re-negotiation, the two parties signed the final contract and the tour operating group paid the amount agreed.

Punch line

The acquisition of the specialist tour operator to Spain and Portugal allowed the Tour Operating Group to diversify its offering in terms of destinations and enter into the largest destination markets for UK holiday makers.

Results delivered

The Tour Operating Group managed to acquire a specialist tour operator to two of the largest destinations for UK holiday makers. Using its financial strength and expertise the group managed to double the number of tourists of the acquired company within two years and recover its investment in only three years!

IV. EU / GOVERNMENT GRANTS

DESCRIPTION

During the last decade grants have been widely used to finance almost any type of financial activity. Nowadays this source of finance has become more elaborated and time consuming as the demand for grants has increased and the procedures to follow have become more complicated.

BENEFITS

Grants, if wisely used, may increase productivity thus contributing to the economy’s overall improvement.
Grants allow the company to increase capacity, increase sales and gain market share

At EXES we can assist you in all necessary steps required to successfully apply for EU/Government grants, providing that you meet the criteria.

Results:EU/Government Grant for a seaside hotel

The Challenge

A seaside hotel with 210 rooms was acquired by a multi-national Hotel Group. The hotel required extensive renovation as it had not been renovated for more than ten years. The management of the hotel asked us to prepare a Business Plan, apply for banking finance and explore the possibility of a government grant.

Our Solution

In order to prepare the business plan, our company’s staff obtained and analysed historic financial information about the hotel. Then, a visit took place at the resort where we held meetings with key hotel staff. Following our meetings we held meetings with the Tour Operator’s Group Hotel Director to understand their plans for the future and especially their sales strategy. Based on this information we prepared the hotel’s Business Plan which was approved by the management.

Our next step was to obtain the list of requirements for eligibility into the new subsidies programme. By reviewing the criteria it was clear that the renovation would be eligible for subsidies so an application for subsidies was submitted. The application was supported by the Business Plan and the necessary legal and financial documentation.

At the same time, we submitted and presented the Business Plan to the company’s main bank and, after a short negotiation, the loan application was approved.

Finally, the application for subsidies was appraised and approved. The hotel secured a sizeable subsidy of approximately €800,000.

Punch line

A newly acquired sea side hotel required extensive renovation and with the assistance of a generous government grant it was fully re-furbished in eight months.

Results delivered

The government subsidy of €800,000, a banking loan and a contribution by the Hotel Group resulted in a much needed renovation which more than doubled the hotel’s Gross Operating Profit (GOP) within three years.

V. COMPANY FORMATION IN CYPRUS, GREECE, UK, DUBAI & EGYPT

DESCRIPTION

Setting up a new company abroad requires local knowledge of the legal system and the accounting framework. Local support can be invaluable and save your company time and money. A company may be set up for both tax reasons and new market entry. One of the best ways to compete in a market abroad, is the set up of a local company as it allows you to gain the trust of local prospective customers.

BENEFITS

Take advantages of local tax laws
Explore opportunities in attractive markets
Benefit from local knowledge and improve products

At EXES, we have developed networks of local consulting, accounting and legal firms in Cyprus, Greece, the UK, Dubai and Egypt. We already have active clientele in these markets and we understand the way the local market operates. Therefore, we can assist not only with the set up of a local company but also with the market entry strategy into these countries.

Results:Set up of a new Food & Beverage company

The Challenge

A leading international Alcoholic Beverages Group operated through a representative office with only one manager. An international acquisition of another alcoholic beverages company led to the need for a subsidiary company in order to manage the increased sales volume. The manager, now CEO of the new company, has approached us in order to assist him to set up the company within three months.

Our Solution

Our company took the following steps concurrently in order to set up the company:

Prepared a Business Plan in close co-operation with the CEO
Participated in the set up of the new company’s pricing policy
Prepared an analysis of the capital required to set up the new company
Prepared an Organisational Chart and an analysis of the staff required
Prepared a detailed Project Plan for the set up of the company
Acted as Project Manager for the whole duration of the new company’s set up
Participated in the selection of the company’s top management
Participated in the preparation of procedures and job descriptions
Participated in the selection of key suppliers including a third party logistics company
Participated in the launch of the company and
Assisted in the initial days of the new company’s operation

Punch line

A leading international Alcoholic Beverages Group set up a fully operational subsidiary company in record time.

Results delivered

The new company was fully operational within tight deadlines in a unique project. The project involved all aspects of a company’s operation including strategy, organisation, procedures, policies, human resources, tax etc. In addition, within two years of its operation the company became one of the leading alcoholic beverages companies.

VI. INVESTMENTS IN PRIVATE COMPANIES

DESCRIPTION

An important step before investing should be the preparation of a Feasibility Study to ensure that the investment is viable and it fulfills the company's investment criteria. A Feasibility Study will provide valuable insights into the risk and the return of the investment in advance.

BENEFITS

Identify the risk of the investment
Determine the expected Return on Investment (ROI)
Examine different scenarios
Take advantage of new opportunities

At EXES, our management has been assisting companies to select suitable investments for more than eighteen years in the tourism, manufacturing, retail, healthcare and services industries. We prepare Feasibility Studies and assist companies to invest effectively and efficiently.

Results:Set up of an Investment Company

The Challenge

nvestors with expertise in the tourism sector wanted to set up an investment company with a minimum capital of €25mn in order to acquire companies in the tourism sector in the United Kingdom, Greece, Cyprus and other European markets. The lead investors provided 50% of the required funds and they wanted to raise the remaining 50% from the market.

Our Solution

Our company worked with the lead investors in order to prepare a presentation for potential investors (based on the term sheet) outlining the strategy, structure and lead investors of the investment company as well as the key criteria for investments/ acquisitions.

Then we created a profile for candidates and prepared a list of potential investors. We presented this investment opportunity to investment banks, investment companies, retail banks and high net worth individuals in the United Kingdom, Greece, Cyprus and Russia.

The potential investors were identified and screened. Once they were approved by the lead investors they participated in the share capital of the company.

Punch line

Set up of an investment company in order to facilitate acquisition of companies in the tourism sector in the United Kingdom, Greece, Cyprus and other European markets.

Results delivered

The investment company raised all the funds required and received all the required legal approvals. Shortly after, the company was able to commence its operations, screen acquisition targets and start investing its funds.

VII. INVESTMENTS IN REAL ESTATE

DESCRIPTION

Investments in real estate are generally considered to be investments of moderate risk. However, the recent global economic crisis reminded investors that no investment is safe from economic downturns. Careful selection of property investments can minimise risk and provide attractive rental income.

BENEFITS

Opportunities are available, as property prices have not yet recovered from the recent economic downturn
Possibility to generate both rental income and capital gains from the appreciation of the properties
Banking finance for real estate investments is now widely available
Residence by investment schemes available in Cyprus for non-EU residents

At EXES, we have partnered with leading property developers and real estate agents in Cyprus and Greece, to identify unique investment opportunities that fulfill our clients’ investment criteria.

Results:Investment in two Hotel Properties

The Challenge

The Hotel Group consisted primarily of small two and three star hotels in Greece, Cyprus and the United Kingdom. The Board of Directors decided change its strategy and focus on larger and more upmarket hotels of three and four stars. The Board asked us to identify upmarket hotel properties that fit into the Group’s new strategy

Our Solution

Our company visited the hotel properties of the Group and analysed the tourism and hotel markets. Then, we prepared a list of the acquisition criteria which was agreed with the Board of the Hotel Group. Based on the criteria, five hotels were selected of which two were the ownership of a single company.

Our company approached the company with the two hotels and the negotiation process commenced. Following three months of negotiation a ‘Heads of Agreement’ (Initial) contract was signed.

The Due Diligence process followed and the final contract was signed two months later. This acquisition marked an important shift in the Group’s strategy and eventually smaller, two star hotels were sold off.

Punch line

The Hotel Group managed to acquire two prestigious hotels that allowed it to attract upmarket customers and build a stronger brand.

Results delivered

The Hotel Group managed to acquire two large four star hotels that added prestige to the Group. These hotels were soon affiliated with international hotel associations and they allowed the Group to attract upmarket as well as business clients to all its properties.