Professional Documents
Culture Documents
Restructuring Version 07
An Overview
November 2012
Forward 4
What is Restructuring? 5 Appendix I Sell-offs 30
Restructuring Strategies 6 Appendix II Equity Carve-outs 31
Reasons for Restructuring 8 Appendix III Spin-offs 35
Symptoms for Restructuring 9 Appendix IV Spin-ins 39
Obstacles to Restructuring 10 Appendix V Corporate Splits 40
Successful Restructuring 11 Appendix VI Tracking Stocks 42
Preemptive Restructuring 12 Appendix VII Joint Ventures 44
Prior to Restructuring 14 Appendix VIII About Pytheas 47
The Restructuring Process 15
Measuring Results 21
Discussion 22
Conclusion 26
Forward
Organizations are human systems and their system structure includes the worldview,
beliefs, and mental models of their leaders and members. Changing organizational
behavior requires changing the belief system of its personnel. This process of changing
beliefs, learning, requires clear, open communications throughout the organization.
Improving
Organizational performance ultimately rests on human behavior and improving
performance requires changing behavior. Therefore corporate restructuring should have as performance
a fundamental goal the facilitation of clear, open communication that can enable
organizational ongoing learning and clarify accountability for results. requires
Continuous organizational learning is necessary to stay up to date. Organizations that changing
cannot or will not learn will become obsolete. Leaders must periodically examine the
structure of their organization to assure that it continues to provide an environment for behavior
organizational learning. The points of leverage in organizations are the beliefs and
worldview of their decision makers. The sense of purpose, vision and commitment of an
organization's leadership play a critical role in the results it can accomplish.
4
What is Restructuring?
5
Restructuring strategies
6
Restructuring strategies
7
Reasons for Restructuring
8
Symptoms for Restructuring
9
Obstacles to Restructuring
10
Successful Restructuring
11
Preemptive Restructuring
Organizations could benefit by restructuring before they are hit with a crisis; a preemptive
restructuring may often be appropriate. If an organization waits too long to address
problems with its business, the resulting restructuring may be very painful as the options Preemptive
remaining will definitely be fewer.
restructuring
A preemptive restructuring may deter executives from taking the full measures that are
necessary to return the business to a sound footing whereas a resulting restructuring may can act as a
severely disrupt the business. If, for example, it is necessary to layoff 20% of your
workforce to achieve the same cost efficiency as your competitors, better to do this over deterrent to
several years than all at once. The key is to recognize the problem as early as possible.
painful
Organizations must perform a "restructuring audit" on their businesses periodically, looking
for opportunities to create value by voluntarily restructuring, before circumstances leave surprises
them with no choice.
down the road
12
Preemptive Restructuring
Preemptive or not restructuring initiatives fail when issues are overlooked or approaches undertaken are unrealistic. Key points
the Board of Directors (BOD) should consider before restructuring:
Adding value Balancing short- and long-term risks
What is the organizations core business (Units, products, How is the employment brand managed?
services and customers that bring cash into the business)? Could proposed measures damage the future business
How should the redesigned organization look like? strategy?
Is the organization efficiently functioning and does it obtain What steps should be taken so that key talent is retained?
true value for money? How is the development of staff continued whilst
restructuring?
Engaging effectively with staff
What is the market impression about the organization?
Is the approach to restructuring consistent with the
organizations declared values?
Are effective communication plans in place?
Is management engaging with staff in an appropriate
manner?
How does staff feel about being part of the organization?
13
Prior to Restructuring
Prior to restructuring:
Make sure that that the organizations owners, leadership team and directors are
personally protected.
When the organization is in trouble or under restructuring, it is vulnerable to lawsuits Prior to
from creditors and others wanting to cash in on its distress. The organization should
make sure that its top leaders are protected by a Directors and Officers policy. restructuring
Real estate planning should be encouraged to help protect personal assets against directors
personal lawsuits. By knowing that everyone is safe, the organization can focus and
devote all efforts against restructuring. should be
Oversee all cash collections and payments. personally
The CEO must take complete control of cash (how, depends on the size and existing
structure of the organization). If cash is controlled it cannot be overspent. protected
14
The Restructuring Process
As companies are coming under more pressure to create shareholder value they will
become engaged in divestitures of underperforming business units or subsidiaries.
15
The Restructuring Process
business, companies must redesign and streamline business processes. Such efforts
can be extended to the entire supply chain; business rebuilding. This involves the whole
range of the organizations business activities, including strategies and individual
business processes (financial and operational restructuring).
Ongoing
When organizations have improved the efficiency of their core businesses sufficiently, organizational
they are poised to shift emphasis from short-term profitability to long-term profitable
growth. To sustain growth, companies need to launch new products and develop new
markets; value-building growth. Growth initiatives usually take several years to yield
restructuring
results. Consequently, companies will need to consider front-loading of growth
initiatives. In many cases, business rebuilding and value-building growth take place
is a must for
simultaneously rather than one after the other. every
However, unless the company undergoes organizational restructuring it is more than company
likely that the inefficiencies that forced the company to undergo financial restructuring in
the first place will surface again.
16
The Restructuring Process
17
The Restructuring Process
18
The Restructuring Process
19
The Restructuring Process
The
Restructuring
Process
chart
20
Measuring Results
21
Discussion
Corporate overhead allocation between the subsidiary and the parent can be complicated
Before an organization can divest a subsidiary through, say a tax-free spin-off, management must first decide how corporate
overhead will be allocated between the subsidiary and the parent. The allocation decision can be complicated by
management's understandable desire not to give away the best assets or people. It is also necessary to allocate debt
between the two entities, which will generally entail some kind of refinancing. The transaction must meet certain stringent
business purpose tests to qualify as tax-exempt. And if the two entities conducted business with each other before the spin-
off, management must decide whether to extend this relationship through some formal contractual arrangement.
Corporate downsizing challenges include managing relations with remaining workforce and press
Corporate downsizing presents management with formidable challenges. In addition to deciding how many employees
should be laid off, management must decide which employees to target (e.g., white collar vs. factory workers, domestic vs.
foreign employees, etc.) and set a timetable for the layoffs. It must also carefully manage the organizations relations with
the remaining workforce and the press. This process becomes much more complicated when management's compensation
is tied to the financial success of the restructuring through stock options and other incentive compensation. And when layoffs
are the by-product of a corporate merger, it is necessary to decide how they will be spread over the merging companies'
workforces. This decision can significantly impact the merger integration process and how the stock market values the
merger, by sending employees and investors a signal about which merging company is dominant.
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Discussion
Sometimes disputes over the allocation of value arise because claimholders disagree over what the entire company is
worth. To bridge such disagreements over value, a deal can be structured to include an "insurance policy" that pays one
party a sum tied to the future realized value of the firm. This sort of arrangement sometimes appears in mergers in the form
of "earn-out provisions" and "collars. Also in some bankruptcy restructuring plans (although relatively uncommon), creditors
can be issued warrants or puts that hedge against changes in the value of the other claims they receive under the plan.
23
Discussion
A better way to this would be to disclose useful information to investors and analysts that they can use to value the
restructuring more accurately. However, managers are often limited in what they can disclose publicly. For example, detailed
data on the location of employee layoffs in a firm could benefit the firm's competitors by revealing its strengths and
weaknesses in specific product and geographic markets. Disclosing such data might also further poison the company's
relationship with its workforce. Management's credibility obviously also matters in how its disclosures are received.
Many restructurings try to improve company profitability two ways, by both reducing costs and raising revenues. However,
24
Discussion
experience suggests that investors and analysts generally reward promises of revenue growth much less than they do
evidence of cost reductions. When conventional disclosure strategies are ineffective in a restructuring, sometimes more
creative strategies can be devised. Often a new earnings measure, which can correspond more closely to cash flows, has to
be designed to educate investors about a buyout's financial benefits. However, acceptance of such an accounting innovation
can be uneven at first On the other hand communicating with investors is relatively easy when the company is nonpublic
and/or closely held. But having no stock price can be a double-edged sword since it is then harder to give managers
incentives to maximize value during the restructuring
25
Conclusion
The pattern of a typical corporate restructuring process calls for an organization to stabilize
Restructuring
its financial situation, return to profit and then focus on growth. In parallel, it must
strengthen its core businesses so that it can generate enough cash to finance subsequent
initiatives fail
growth initiatives. Although focusing on core business alone is not enough! when
To achieve value-building growth, companies must develop and maintain balanced undertaken
business portfolios. The key challenge is to nurture growth options while divesting
underperforming or non-core businesses proactively. Success in proactive divestitures, a approaches
significant restructuring tool, is more likely when companies use deliberately interim
solutions to an eventual exit and lay the groundwork for creating a stand-alone entity. are unrealistic
Leveraged restructuring creates greater corporate value by concentrating more control
among fewer stockholders, initiating enhanced corporate efficiency and performance.
26
Conclusion
27
Conclusion
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Sell-offs
A sell-off is the sale of a business or subsidiary of the parent company to another firm
outside the group, generally resulting in a payment of cash to the parent. In theory, sell-offs
are the least complex of restructuring structures. Acquirers can usually be divided into two
groups: strategic buyers and financial buyers.
Strategic buyers are those who are interested in acquiring a business for strategic
purposes, e.g., increasing market share, creating economies of scale or exploiting
synergies; they are typically companies engaged in the same business as, and therefore
competing with, the business or company under consideration.
In contrast, financial buyers are those who are interested in acquiring a business to secure
a financial return in the short- to medium-term before selling the business or otherwise
exiting the investment. Financial buyers are likely to be buyout firms. Buyout firms raise
funds in order to be able to take equity stakes in companies though funding and assisting
with management buyouts (MBOs) and leveraged buyouts (LBOs). Buyout firms generally
focus on established companies with potential to grow after transformation. Non-core
divisions and subsidiaries of large public companies are their typical targets.
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Equity Carve-outs
31
Equity Carve-outs
3. If the minority carve-out unlocks value and a higher-rated or higher value stock is
created (in aggregate), the stock of the parent company (or subsidiary) has more value
as an acquisition currency;
4. It gives the subsidiary time to become a stronger company before a sale or majority or
full carve-out;
5. It may create business opportunities for the subsidiary by demonstrating that the
subsidiary will be an independent business; and
6. A minority carve-out IPO allows the subsidiary to offer market-linked or other equity
incentives to management.
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Equity Carve-outs
4. In difficult markets, a minority carve-out may impede a selling strategy by setting a price
for the shares of the subsidiary which is below their "real" value; and
5. A minority carve-out may reduce the flexibility with which the parent and subsidiary can
cooperate to capture synergies.
The parent should anticipate that a minority carve-out is often an interim solution. In most
cases, a minority carve-out is later followed by another transaction, such as a sell-off,
follow-on public offering or spin-off. In practice, a minority carve-out is likely to lead to
complete separation over time because the carved-out subsidiary tends to drift away from
and interact less with the parent due to its independence.
In addition, the carved-out subsidiary, if it becomes a publicly listed company, will issue its
own financial statements and establish a public market value, resulting in the increased
possibility of a merger (or takeover) offer. A minority carve-out IPO may be combined with a
later spin-off. If unsuccessful, the minority carve-out may be followed by a spin-in, i.e., the
parent company acquires the shares held by minority shareholders and turns the majority-
owned subsidiary
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Equity Carve-outs
34
Spin-offs
A spin-off (or demerger) often consists of the distribution of a subsidiary's stock to the parent
company's existing shareholders by way of a dividend. A spin-off is a popular way of
undertaking corporate restructuring in the U.S. and Europe. The main reason for the popularity
of spin-offs is that the distribution can often be made tax free for both the parent corporation
and the receiving shareholder. This can represent significant savings to the parent company.
Spin-offs are a means to unlock the value of a subsidiary and transfer that value directly to the
parent company's shareholders. It is especially useful for a subsidiary that does not completely
fit with the parent company's core activities or would otherwise benefit from being a stand-alone
public company.
Spin-offs are also a means to obtain full value for the parent company's shareholders when a
spun-off subsidiary is viable but will not command a reasonable price in a cash divestiture
because of market conditions. Where the shares of the parent company are publicly listed, in
order to ensure that the parent company's shareholders can realize the value of the distribution,
the shares of the subsidiary generally need to be (or become) publicly listed to give the
shareholders the same liquidity in the shares in the subsidiary as they have in the shares of
35
Spin-offs
the parent, i.e., the parent will need to seek a public listing for the new shares. As is the
case with equity carve-outs, the spun-off subsidiary must be a viable stand-alone entity to
create shareholder value. This means that it must have a strong capital structure and a
viable business model. This poses a major challenge for all spin-offs. In addition, spin-offs
have disadvantages, including the following:
1. Unlike an equity carve-out or a sale for cash, neither the parent company nor the
subsidiary receives any cash in the transaction itself;
2. The parent company loses the income and cash flow of the subsidiary without receiving
any cash in return;
3. Unlike a carve-out IPO, the shares are distributed to the parent's shareholders as a
dividend and therefore the parent company may not work hard to create investor
interest in the stock as much as in a carve-out IPO; and
4. If the spun-off subsidiary fails to meet their investment criteria (e.g., minimum size of
market capitalization or portfolio holdings), institutional investors of the parent company
may sell the shares distributed to them in the spin-off.
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Spin-offs
A carve-out IPO may be combined with a later spin-off. The advantages of such two-stage
transactions include the following:
1. The IPO establishes a public market for the subsidiarys stock in advance of the spin-off;
2. The scrutiny which comes with being a publicly listed company should make the subsidiary
a stronger company; and
3. The IPO generates cash for either the parent company or subsidiary or both.
The disadvantages of these two-stage transactions are similar to those of minority carve-outs,
including:
1. The IPO is dependent on equity market conditions;
2. Preparing for and implementing the IPO is time consuming;
3. Companies with small public floats are less attractive to institutional investors; and
4. A depressed stock price may prevent the parent from undertaking the subsequent spin-off.
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Spin-offs
create value for the parent's shareholders by reducing the parent's outstanding shares.
Reducing the parent's shares outstanding increases the earnings and cash flow per share
and, thereby, the value of the remaining shares.
A split-up is a form of split-off where a parent company is broken up into two or more
independent companies. In the split-up, a parent company is often liquidated and the
parent company's shareholders become shareholders of each of the new independent
companies.
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Spin-ins
39
Corporate Splits
The corporate split procedure makes it easier for companies to split business units into
new companies (or existing companies). Prior to the introduction of the corporate split
procedure, it was possible for a company to split a business unit into a new subsidiary
through either an investment-in-kind or a post-establishment transfer of business.
However, the traditional methods to complete such transactions were expensive and time
consuming procedures. For example, an asset valuation by a court appointed inspector
was required.
A corporate split which does not involve the distribution of shares directly to the
shareholders of a transferor company) enables a parent company to:
1. Focus on core businesses;
2. Improve the control span of the parents management team by reducing parental
involvement; and
3. Accommodate differing personnel and compensation systems.
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Corporate Splits
At the same time, such splits enable a parent company to unlock the value of a business
unit by:
1. Clarifying the business units responsibility and authority;
2. Providing a certain degree of autonomy to foster an independent culture;
3. Expediting the business units decision-making to improve business performance; and
4. Enhancing visibility for customers, suppliers and potential alliance partners or buyers.
More significantly, corporate splits facilitate the participation of strategic partners who can
provide necessary capabilities.
41
Tracking Stocks
Tracking stock is a class of parent company common stock that provides a return to
investors linked to the performance of a particular business unit within the parent company.
In theory, tracking stock can create many benefits for both the parent company and the
subsidiary. A tracking stock does not require the parent company to make the tax, legal,
governance and organizational changes required for an equity carve-out or spin-off, e.g.,
no separate board of directors is required. This provides the main appeal to the parent
company over other alternatives. The advantages to using tracking stocks include:
1. The parent company continues to control the business unit and maintain ownership of
its assets;
2. A tracking stock can raise capital on attractive terms;
3. A publicly listed tracking stock establishes a market value for the business to which
management compensation programs can be tied;
4. A tracking stock preserves the operating benefits of a single, integrated corporation;
and
5. The parent company may use the tracking stock as acquisition currency.
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Tracking Stocks
Tracking stocks are often terminated when the circumstances and objectives of the
business and/or parent company change and consequently the parent company decides to
sell, spin off or spin in the tracked business.
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Joint Ventures
When well crafted, joint ventures (JVs) can achieve many of the same objectives for the
parent company as an acquisition of the other company, including access to the resources
and capabilities of the joint venture partner, but at a lower cost and without many of the
risks associated with an acquisition. Consequently, the parent can increase the value of a
subsidiary by way of a JV. Successful JVs are often followed by IPOs.
Joint ventures may be also used as a means of divesting a business. The first step is the
creation of a JV with a strategic partner. Often the strategic partner controls a major stake
(i.e., over 50%) in the JV company. The second step is the acquisition of the minority
shares of the JV company by the strategic partner. Such two-stage transactions provide
the acquiring partner with benefits, including the following:
1. A means to encourage the partner to assist in building the business;
2. A means to get to know the business before a subsequent acquisition; and
3. A means to lay the groundwork for smooth integration after a later acquisition.
Buy-out firms are active buyers of non-core subsidiaries of large public companies.
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Joint Ventures
Although JVs are not their traditional business model, buyout firms may be interested in
forming JVs. Such buyout partnerships can be used as a means of divesting non-core
businesses when a cash sale is unavailable or undesired. The advantages of a buyout
partnership for the parent company and the subsidiary include:
1. A means to encourage the partner to assist in building the business;
2. Experienced buyout firms can greatly assist in building the subsidiary, recruiting a
management team, forming relationships with customers and setting business strategy;
3. Buyout firms invest cash into the subsidiary and assist in funding key business
initiatives;
4. The involvement of experienced and respected buyout firms may be a significant asset
to the subsidiary in a later IPO.
The challenges of a buyout partnership for the parent company and the subsidiary include:
1. A buyout firm may not invest in an entity when the parent company is in control;; and
2. Buyout firms are usually interested in executing an exit strategy within a reasonable
time frame.
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About Pytheas
Pytheas' investment banking capabilities are among the best in the industry,
offering a wide range of investment products and solutions; the breadth and
quality of Pytheas' fundamental research and strategic advice, combined with its
in-depth industry knowledge and geographic specialization, offer investor clients a
wealth of information to evaluate and prioritize their investment decisions.
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Our Vision
We aspire and we realize our vision to be our client's first choice and partner by
retaining a client focus in everything we do.
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Our Core Values
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Pytheas Main Services
50
Sectors & Reach
51
Reach by Country & Function
52
Differentiators & Strategy
53
Differentiators & Strategy
54
Competitive Landscape
55
Contribution per Service
120%
As Asset
100.0%
100%
Management and
80%
Equity Finance
Equity
Finance
became the main
60%
56.7%
46.8%
48.2%
Asset
Management
income contributors,
39.2%
Strategic
Advisory
40%
31.8%
47.9%
by end-2011 Strategic
20%
21.4%
Advisory accounted
0.0%
0.0%
4.2%
3.9%
for only 3.9%
0%
1996
2003
2008
2011
56
Contribution per Industry
57
Pytheas Financials
58
Pytheas Card General
As at 31 December 2011,
Significant ownership in 119 companies; 5A Financial Strength rating by the Dun & Bradstreet
corporation (14 Sep 2011).
987 professionals of which, Also by D&B,
59
Pytheas Asset Management
PAMs investment professionals are located around the world providing strategies that
span a wide spectrum of asset classes including, equity, cash liquidity, real estate,
infrastructure, and private equity.
Pytheas Asset Management believes that the way in which money is managed must
be significantly altered and aligned with a new definition of "performance" that
incorporates risk management, income generation, and alpha/beta separation.
61
Pytheas Equity Finance
Pytheas via Pytheas Equity Finance (PEF), invests in private equity funds,
co-invests in direct investments, and provides liquidity and capital solutions
to valued partners recognizing that Pytheas investors/partners have unique
investment objectives and needs, and is committed to working with each of
its partners in order to provide exceptional service and results.
Dedicated to serving the financing needs of private equity partners and their
portfolio companies Pytheas Equity Finance professionals maintain vast
experience in bank financings (including first and second lien term loans,
asset-backed facilities, revolving credit facilities and synthetic L/C facilities),
securities offerings, bridge lending, mezzanine financings and virtually every
other type of financing available in the marketplace.
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Pytheas Real Estate
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Pytheas Private Credit
Pytheas Private Credit (PPC) provides for finance options of properties part of real
estate projects that Pytheas participates in; for both purchase and re-mortgage.
Since the inception of the service in 2001 Pytheas Private Credit has facilitated for
loans in excess of 394 million.
PPC understands that everyone has different needs and is in a different financial
situation. Whether an EU resident or not, non resident or expatriate purchasing in own
name, through a trust or in a foreign currency PPC can deal with the requirement
quickly, efficiently and confidentially.
Strictly available for clients that are interested in buying property of a Pytheas real
estate development, PPC can arrange competitive and often exclusive rates, usually
on more favorable terms than one could achieve by approaching the banks or other
financial institutions directly.
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Soil, Water & Life Solutions
Soil, Water & Life Solutions services cover all aspects of water, land and soil
management, i.e. water engineering and water resources management including,
water supply and mitigation, hydrological risk assessment, water sensitive urban
design, mine water management, desalination, low-volume irrigation. Soil properties
and management, farm systems designs, tillage management, crop management,
land reclamation and improvement, environmental management, waste management,
etc. Also, alternative energy sources, i.e. solar, wind power, geothermal, tides,
hydroelectric, biodiesel, ethanol, hybrids.
SWLS acknowledges that human induced climate change along with the increasing
population are a serious global threat demanding an urgent global response. It is the
point of view of Pytheas that Sustainable Development well represents one of the
biggest business booms of the world of today (and of tomorrow).
Along with Pytheas Equity Finance, we invest and co-invest in more or less the whole
spectrum of the environmental sustainability sector.
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Pytheas Minerals & Mining
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Pytheas Investors Service
Pytheas Investors Service was established as a vehicle for capital and investment to
advise Pytheas clients on how to shape tomorrows business global map to be a
catalyst for growth, development and diversification by better positioning Pytheas
clients in the global markets and in their quest for excellence.
In close cooperation with the rest of Pytheas professional network, it assists and
guides clients to clearly identify and establish appropriate investment opportunities
through in-depth research and analysis of the world's equities, industries, and
markets.
Product experts, country specialists and industry analysts work in close unison and
pool their talent to design, recommend, and, when appropriate, customize and fine-
tune investment strategies that clients can act on in keeping with their portfolio
preferences and imperatives.
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The Markets Need Pytheas, IB
Investment Banking
While some financial institutions may be better capitalized than before the crisis,
shareholder returns for bank stocks will be under intense pressure as the result of the
loss of proprietary trading revenue, increasing regulation, higher administrative costs
to implement the additional regulation and the movement of many derivatives to Markets long stress
exchanges. Moreover, banks are divesting assets in an attempt to bolster capital and
appease regulators.
will create the need
of the banking
Elevated stress in funding markets (a key threat especially to the Eurozone banks)
combined with the need for the financial sector in general to deleverage (in Europe, sector to
not just in the peripheral economies but also Italy, UK and France) will create the need
of the banking sector to recapitalize and seek external financial advice and capital. recapitalize
Restructuring (financial and organizational), consolidation and M&A will see a surge
and the markets need a solutions provider, such as Pytheas, which not only
understands the market key components but possesses in-depth knowledge and
ability to facilitate change efficiently.
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The Markets Need Pytheas, IB
All companies will be affected by changes in the global banking system as new risk weights will drive a wedge between
investment grade and non-investment grade credits, Pytheas recommends that companies should actively consider capital
market alternatives to bank capital wherever feasible. Companies need to assess the strategic implications of Europe entering
negative growth territory for the next two years or more (with firms making worst-case contingency plans covering liquidity,
access to funding, FX risk, supply chain pressure and strategic capital deployment). As capital expenditures are likely to remain
subdued as a result of market uncertainty, stronger companies should consider alternative uses for this excess liquidity, such as
share buybacks. The potential to unlock value through financial restructuring is of utmost importance streamlining business
models by separating underperforming or non-core businesses through spin-offs, split-offs or divestitures.
M&A
Many organizations in the US and Europe will look to M&A to achieve their growth goals. Pent up demand will help propel M&A
business; of course there will be far more buyers looking for acquisitions than there will be quality companies for sale. Because
of the last years of crisis, companies who had previously been on the market or who had been thinking seriously of selling their
businesses and subsequently taken themselves off the market are now feeling a bit more hopeful about getting their corporation
sold for a better payout. Private equity companies will be also looking to sell older portfolio companies and raise new funds. The
expansion of middle market M&A activity will also see a surge.
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The Markets Need Pytheas, AM
Asset Management
Pytheas Asset Management believes that the way in which money is managed must be significantly altered and aligned with a
new definition of "performance" that incorporates risk management, income generation, and alpha/beta separation. The
increasing institutionalization of the retail sale requires asset managers to take a new approach to third-party distribution and
client service. Seizing the retirement opportunity (especially in the US and Western Europe), retooling the investment
management process, reinventing retail distribution and product management capabilities, reorienting new business
development toward future growth opportunities, and driving scale to generate operating leverage are the Pytheas key asset
management initiatives and differentiators.
Also, emerging markets around the world are showing themselves to be more than simply investment opportunities. With global
inflows on the rise, asset managers are turning to emerging markets to tap distribution and sales options and to source new
money. The doors for asset managers are opening not just in BRIC countries and the N-11, but also in regions like the Middle
East with their impressive growth rates. Double-digit growth is within reach for asset managers in South America, the Middle
East, and in parts of Asia Pacific. But theres more to market entry than just macroeconomic potential. Expanding into an
emerging market, especially, requires close attention to that market and its development path, and success depends on
approaches and positioning that are tailored accordingly. It is the fact that these markets are in such flux that necessitate
Pytheas robust strategies.
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The Markets Need Pytheas, CR
Restructuring
Its all about the health and future of the underlying assets. Sounds intuitive but amazingly often overlooked, particularly by
stakeholders and investors (including Sovereigns who recently have found themselves in the role of proprietors of significant
assets). These parties traditionally have not been as transparent or close to the asset as they should be given their credit/
investment exposure. Pytheas will be a catalyst for change in this regard its restructuring team, in collaboration with its
investment banking and asset management teams, are focused on a holistic evaluation of assets, assessment of management
teams, strategies and core processes and systems which are vital to the health of the underlying assets and any serious
consideration of recapitalization opportunities. Our restructuring team will consist of two types of experienced restructuring
professionals: generalists with expertise cross-sector in core management processes, systems, procedures and
transformational managers with demonstrated records of sustainable business transformation.
The amend and extend (e.g. granting debt default waivers) practices of traditional lenders is under considerable regulatory
and governmental pressure in both the U.S. and Europe, but particularly in the current European landscape and will be
significantly curtail. New investors must take particularly care in evaluating with granularity potential assets. Pytheas delivers
transparency to existing stakeholders and investors in evaluating and fixing the underlying assets.
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The Markets Need Pytheas, SA
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Pytheas Governance
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Pytheas Corporate Officers
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Pytheas Organogram
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Pytheas Regional Offices
Flagship Office & Regional Office & Regional Office & Regional Office &
Division Europe Division Emerging Markets Division Africa Division Middle East/ Asia
Pytheas Limited Pytheas (Cyprus) Limited Pytheas (Africa) Limited Pytheas (MEA) Limited
50 Grosvenor street 2 Sofouli street 138 West street DIFC
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Pytheas Sample Publications
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There are rare moments in time when a business entity has
the ability to be exceptional and outstanding and dares to be
different, because, it can be different, with truly innovative
and entrepreneurial spirit, with integrity, possessing critical
thinking, and improving the status quo. This is one of those
moments and we are Pytheas!
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Copyright 2012 Pytheas Limited
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