Capital Structure Optimisation & Strategy
In a competitive environment, effective capital structuring and strategy with a lower cost of capital are crucial to achieving maximum shareholder and/or social returns on capital.
For corporates, an effective capital structure requires an optimal balance between debt and equity, and between efficiency, liquidity and flexibility. Achieving this requires a clear understanding of the business and its inherent operational flexibility. It also means a detailed view of every aspect of the capital structure, including derivatives and pension liabilities.
We support clients with
- an independent, specialist assessment of the impact and perception of changes to a capital structure on regulators, staff, customers, credit rating agencies, creditors and other stakeholders.
- financial modelling capabilities, with full consideration of risk appetite and key corporate objectives in order to assess funding options and cost of funds.
- assessment of the impact on shareholder value of different options – to ensure clients have a clear and transparent comparison framework in order to support effective governance and decision making.
- for clients in the non-profit distributing and project finance sectors, where different forms of debt can play a much bigger role, often in the absence of equity capital, we appraise and evaluate the optimal use of capital and corporate structure, frequently relating to the balance between regulated and non-regulated activities and associated risks.
The Centrus approach blends pragmatism with incisive analysis to create a partnership with clients, helping them arrive at the optimal position.