DOING BUSINESS IN TOUGH TIMESDOING BUSINESS IN TOUGH TIMES

MOBIUS  STRIP CAPITAL ADVISORS

THE FUNDAMENTAL CONVENTIONAL BUSINESS MODEL

Capital Sales

Equity Investors Operating Products andAsset

BanksCash

Operating Assets

Products andServices

Asset use

CostsReturn

Globally an environment prevailed where businesses not wishing to be left out of the race to grow biggerGlobally, an environment prevailed , where businesses, not wishing to be left out of the race to grow bigger within the shortest possible time, raised both equity and debt capital heavily to fund ambitious expansions, acquisitions and diversifications. It was all about maximising growth opportunities, and financing this was not an issue . 

dd h b h l f h k d bA sudden change in business environment have left equity investors with stuck investments, increase in debt and inventories of companies leading to tight liquidity.

THE CURRENT ENVIRONMENTGLOBAL FINANCIAL CRISIS■Massive destruction of capital pool■ Lack of confidence

GLOBAL ECONOMIC CRISIS■ Recession in major economies■ Lower growth in others

Capital Sales

■ Poor liquidity in banking systemg

■ Lower consumption and demand

Equity InvestorsEquity Investors

BanksCash

Operating Assets

Products andServices

Asset use

C tR t CostsReturn

RESULT:■ Lower Sales and Profits■ Lower Sales and Profits■ Reduced cash flows■ Lower Return on Capital Employed■ Reduced Market Capitalisation■ Reduced Market Capitalisation■ Lower Enterprise Valuation

FUNDING  OPTIONS AVAILABLE

Long Term

EquityEquity SharesPreference SharesOptions and WarrantsOptions  and Warrants

Debentures

F di

Debt InstrumentsDebenturesBondsConvertibles

Funding sources

Bank borrowings Term LoansBank borrowingsCash‐Credit/ Overdraft

L i / Hi P h *Non‐Bank Finance

Leasing/ Hire‐Purchase*Factoring

Short Term

NAVIGATING THROUGH DIFFICULT TIMESTHE FUTURE BUSINESS ENVIRONMENT IS LIKELY TO BE■ Less free‐wheeling■More tightly regulatedg y g■More risk averse

Businesses will need to have a fresh perspective on all constituents of the cycle 

Equity InvestorsCash

Operating A t

Products andS i

Asset 

INVESTMENTS ASSETS

BanksCash Assets Servicesuse

Identify stable and ■ Raise just  ■ Build  ■ Optimize  Basic goods Identify stable andliquid players

jthe rightamount of capital

only essentials■ Dispose 

passet utilization■ Trim 

gand services■ Healthcare■ Education■ Infrastruc■ Converse 

Cashnon‐core assets

excess flab■ Infrastruc‐ture■ Staples

TIP: The transaction needs to strengthen a company’s competitive position, i.e., cost position/ brand strength/ customer loyalty‐ factors that do not change with economic cycles

CHALLENGE: Traditionally profitable businesses are finding it difficult to raise capital owing to tight CHALLENGE: Traditionally profitable businesses are finding it difficult to raise capital owing to tight liquidity and higher investors’/lenders’ risk‐aversion 

SERVICES

Our corporate finance advisory services covers the following areas:areas:

■ Independent Advisory■ Independent Advisory■ Fund Raising■ Corporate Restructuring■ Share Placements■ Share Placements■ Private Equity■ M&A

Services that help Clients manage growth effectively

We achieve client objectives by employing “back to basics” I Banking principlesWe achieve client objectives by employing  back‐to‐basics  I‐Banking principles

CONCLUSION

Our reputation has caused many clients to come to us because they have problems that were not solved by others.

Each case we receive has unique features: paradoxes, anomalies, and other contradictory conditions‐we are known to have the ability to develop unique solutions to complex problems. 

Thank  You

CORPORATE FINANCE ADVISORY

FOR LEADERS AND INNOVATORS

MOBIUS  STRIP CAPITAL ADVISORS

FOR LEADERS AND INNOVATORSFor enquiries, please contact:MOBIUS STRIP CAPITAL ADVISORS,1/44  MALHAR  NEAR LILAVATI HOSPITAL1/44, MALHAR, NEAR LILAVATI HOSPITAL,BANDRA RECLAMATION, BANDRA(W),MUMBAI 400 050   INDIAT: +91 22 6514 4513F: +91 22 2642 0288F: +91 22 2642 0288email : capitaladvisors.mobiusstrip@gmail.com

Indranil Deb    Jonathan  D’Souza

APRIL 19,2009

+91 98336 27280     +91  99301 94384http://www.linkedin.com/pub/2/424/645