Financial Services

Capital Structure Planning

Capital Structure Planning

Capital Structure Planning
Capital Structure Planning

Capital Structure planning is required by different sizes of companies for different financial events with the same motive of increasing profitability, minimizing the cost of capital, maximizing the firm’s value and optimum utilization of funds. Factors that influence capital structure planning are the nature and size of the firm, stability of revenue generation, expected future cash flows and flexibility of financial structure amongst others.

What We Do

What We Do

StartupMinds’s core competency lies in profound financial expertise with which we guide you through the process of recapitalization with ease. Our approach of business diagnostics coupled with the precise knowledge of various financial techniques allows us to consult you on the right mix of debt and equity which would be in line with the long-term goals of the organization and assist in keeping the optimal cost of capital.

Capitals are utilized by the company to either fund the operations, assets requirement, growth or economies of scale. The company must tradeoff between the debt and equity to determine the optimum capital structure. Capital structure planning also helps us to evaluate the strength of company’s financial statements. A balance sheet is considered to be healthy if it has more equity and less debt. A very high leverage ratio might affect the smooth running of the business as they will have to bear steep interest cost and creditors might not allow you to take higher risk.

Restructuring services are required by the business for generally improving the overall profitability or while fundraising, Merger, and Acquisition, Leverage buy-outs et al.

StartupMinds evaluates the current state of operation, nature, and size of the business, the purpose of financing, legal requirements and current cost of capital to suggest measures for future improvement, maximization of return, minimizing the cost and risk, fully utilize the available capital, maintain liquidity and flexibility of financing while preserving the control of the business.

We work extensively towards the growth of our clients by providing periodic in-depth insights and financial analysis along with a plan of action to get ahead of the competition and pave a path to success.

 

Our Team