Phoenix’s Financial Advisory services are designed to assist companies in analyzing and determining the ideal capital structure needed to support their on-going operations and business plans.

These projects focus on achieving maximum shareholder value, within the context of the specific market dynamics affecting the company’s operations and of a generally volatile Brazilian economic environment.  We believe that the use of financial leverage as a vehicle for promoting shareholder wealth should be contemplated in a prudent and appropriate way. Certain leverage benchmarks that are commonly used in developed countries are not necessarily adequate for the Brazilian marketplace and need to be carefully examined.

Each project will have a scope of work that is tailored according to the specific needs of each company. In our experience, however, most assignments will include all or most of the following steps:

• In-depth assessment and understanding of the company’s operations, markets and competitive environment. This is instrumental in enabling the Phoenix team to assess the company’s full range of virtues and challenges as well as to adequately manage internal sensitivities.

• Close examination of the company’s financial statements and organizational structure, as well as all of its legal, tax, debt and labor liabilities.

• Design and development of a detailed operating and financial model. Phoenix’s unique approach of building a totally customized model for each project allows it to capture the level of detail that is relevant and necessary for each specific situation. This model will be used as a tool to analyze the company’s past performance, assist in the development of a business plan and in determining the appropriate capital structure under a series of different scenarios of company performance and market and economic environments.

• Development of recommendations regarding the most appropriate capital structure that will support the company’s business plans.

As a direct result of this assignment, the client will have a clear understanding of the types and levels of debt and equity capital that the company will require to maximize shareholder wealth. These recommendations will normally also include a discussion on how to best approach and secure the necessary funding from providers of financing. Phoenix may also assist the company in obtaining the recommended funding from providers of debt and equity capital.