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Ittihad Securities Inc. business solutions are reserved for qualifying ethical businesses and entrepreneurs. If your existing business or business idea meets our philosophy and requisite standards, we would be happy to explore your businesses’ needs with you. Our services range from strategic advisory, capital funding, restructurings, mergers and acquisitions, debt retirement strategies and business succession planning. We are experienced and flexible enough to provide a combination of services especially suited to the scale and industry of your company. Our goal is to help your business achieve its immediate financing, and long-term strategic goals. We aim to add value to your firm at every stage of its evolution – from concept to fruition.
Financial Advisory Services
Financial Advisory Services Ittihad Securities provides a variety of advisory services to business ventures looking for help in defining or redefining their strategies. We deconstruct complex choices into concrete plans, and perform cost-benefit comparisons of the different strategic choices facing your company. We also provide advice on navigating the many choices available when considering different sources or strategies to fund your business. For the firms that we work with on substantial projects, we also consult at the board level to provide sustained strategic advice. Although there are many factors that ultimately determine the success or failure of business ventures, it is fair to say that the quality of advice they receive is pivotal in the success of many. In conjunction with your management, we can identify your strengths and weaknesses, opportunities and threats – helping you develop concrete strategies that will help your business grow, or recover from previous setbacks. In these times, it takes a team to succeed in business, and we will be a formidable asset to yours.
Capital Funding While we help both established businesses and start-ups raise capital for their growing needs, we do not offer credit services for the purposes of improving cash flow. We also do not lend against account receivables for the purpose of making payroll or debt service payments. We invest and find investors for your venture if you have a particular business idea, strategic plan or an identified acquisition in mind.
After evaluating the value of your business plans, we can invest in your company ourselves, arrange for silent partners, or even structure a private financing arrangement. This will allow your firm to raise capital without taking on interest-based debt, without pledging personally-owned collateral and without a constant drain of debt servicing on your company’s cash flow.
Our financing takes place under a joint-venture model, whereby we share both the profits and the losses that your business may bear. This is in direct contrast to many conventional financing models, whereby the financier is guaranteed a certain ROI, even if the business itself is suffering. Furthermore, our profit-sharing formula is agreed upon before the financing is put in place, thereby eliminating many future surprises for either party.
If you choose to fund your business via an interest-bearing loan, repayment of loan + interest will be required. Furthermore, the interest-payments will impact your business as a cost before any profit can be declared. Our method of financing will impact your business only after you have been able to declare a profit. Since our financing impacts only the distribution of profit, not its total amount, we have found our clients are able to build hardier businesses. We feel that if both the financier and the entrepreneur have a vested interest in the success of the venture, we remove one more impediment to the success of your business.
For firms looking for comprehensive capital solutions, we also structure private financing arrangements from inception to closure. In this case, in return for investment capital, investors would receive shares or investment certificates that would entitle them to participate in the growth of your firm. This could be through the capital appreciation of their shares, or through a dividend or royalty payment that your business declared.
Different strategies will be advantageous to firms in different stages of their development or in different industries. As professionals that continue to help companies clarify their choices, we encourage you to give some thought to the advice you seek. When evaluating different choices, the cost of funds, the risks associated with each kind of capital infusion and the competing claims on your operating costs should all be evaluated. In these times, it takes a team to succeed in business, and we will be a superb asset to yours.
Mergers and Acquisitions / Restructurings For qualified businesses, we serve as consultants on merger proposals, acquisitions, spin-offs and restructurings. We value potential targets and determine the gains or losses resulting from the acquisition or disbursement. Given the fiscal histories and market prospects of the merging entities, we estimate integration costs and structure timelines for profitability. Furthermore, we create detailed analyses on the impact of acquisitions and divestments on your balance sheet and cash-flow. We find that many small companies fail to expand because owners and closely held boards lack the time and expertise to adequately value opportunities. If your management team is ready to manage an expanded business but is weaker at strategic acquisitions, allow us to help you structure the terms and even funding for a merger. We can create investor-funded strategies to help you buy your target, participating in the venture as shareholders or silent partners.
For spin-offs, we can either structure an outright sale to an outside buyer or help transition the division you are divesting into an employee –owned company. In all cases, we find purchasers for whom your divestment is a more fitting line of business. This ensures that your divestment is not undervalued and that the social value generated by your spun-off venture continues to be felt by the community that it serves.
Whether you are contemplating a sale of a part of your business, or an addition that will project you beyond your competition, our services are designed to minimize the uncertainties faced by your enterprise. In these times, it takes a team to succeed in business, and we will be a superb asset to yours.
Debt Retirement If your firm’s growth is being stifled because of debt service payments but your business is otherwise viable, we can assemble a package that will retire your debt in return for an equity position. We do not wish to see firms that are bringing value to society driven into bondage or bankruptcy because of extraneous considerations such as interest-rate changes. If you have long-standing relationships with your suppliers and customers, it might be in your best interest to use our services and repay your debt. You will thereby revoke your creditor’s ability to adversely affect your firm’s survival, will maintain goodwill in your firm and ensure that the value you have built up in your business endures.
Furthermore, as our services would divert your cash-flow from debt servicing, you would be able to reinvest in your business by upgrading your facilities, improving employee retention strategies and putting money towards business growth rather than debt management.
Business Succession Planning Many private firms are owned and operated by baby boomers that are looking to retire in the next 5-10 years. They may be thriving businesses today, but many have not planned for the owners’ eventual retirement or incapacitation. What makes the problem worse is that natural successors, an owner-operator’s immediate family, may have neither the expertise nor the will to carry on the business. On the other hand, the firms’ key employees, who could potentially buy the business, typically do not possess the funds required to do so.
Whether you are thinking of leaving the business to your heirs or your management, there are strategies to minimize transition costs and maximize return to the original owners. If your business is in such a position, contact us to explore potential solutions. Since none of our strategies will use interest-based debt contracts, you may find that our solution may provide you with the most flexibility and least impact on your balance sheet and cash flow.
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2007
Ittihad Securities Inc. All Rights Reserved. |
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