Advize is an independent specialist global financial markets advisor operating in both the United States and South Africa. We assist CFO’s and Treasurers to optimize their liability structure and manage the financial risks in their businesses more effectively and cost efficiently.
We provide our clients with specialized advice that helps them to achieve four key strategic liability management objectives:
- Maximize their balance sheet flexibility;
- Minimize the cost of their borrowings and the financial risk management initiatives they undertake;
- Increase their speed of response to ever-changing financial market conditions and business opportunities; and
- Better manage their financial risk exposures.
Our services enhance our clients’ in-house capabilities, recognizing the fact that they typically do not have sufficient time, capacity or the necessary resources to attend to all their daily demands, thereby freeing them up to attend to the most urgent priorities.
More specifically, on an integrated basis, we assist our clients to:
- Identify the unique determinants of their capital structure so they can set a target debt level (range) that maximizes shareholder value;
- Fully understand the key drivers of their firm’s debt structure enabling them to:
- Structure an appropriate priority of liabilities that most closely reflects their credit quality so they can minimize financing costs and improve capital access;
- Achieve the best fixed/floating mix of debt to control unwanted interest rate exposures that may ultimately lead to reduced cash flows and greater earnings volatility;
- Find the right currency mix of borrowings that results in more predictable cash flow and earnings streams as well as obtaining tax efficiencies;
- Build a maturity profile to match their financing strategy that best balances the trade-offs between funding costs and rollover risk;
- Identify alternative sources and types of finance across the banking and capital markets to increase the available choices that satisfy their strategic liability and risk management objectives;
- Determine the optimal level of strategic/core cash holdings and credit lines to minimize any negative costs of carry, whilst maintaining sufficient access to liquidity;
- Always be poised to take advantage of any favorable market levels, mispricing, and supply/demand conditions that exist from time to time; and
- Identify, measure, manage and monitor the financial risks that arise from any FX, interest rate, commodity, credit and liquidity (financing and investment) exposures arising from their chosen liability structure and business operations, thereby allowing them to:
- Increase debt capacity;
- More effectively control cash flow and earnings volatility;
- Improve capital structure decision-making; and
- Better communicate management’s quality to shareholders.
Our services also include comprehensive:
- Credit ratings guidance for both rated and unrated clients to underpin their chosen liability strategy which seeks to maximize both their rating and debt capacity;
- Debt investor relations management advisory for both the banking and capital markets; and
- Capital raising advisory for clients that need to borrow money.
Although our advisory services are mostly focused on the strategic liability and financial risk management aspects of our clients’ businesses, we have the skills and depth of experience to advise more generally about any of the global markets products, structures and strategies they may use. We also always ensure that any solutions we propose are aligned with and reinforce their treasury management objectives.
We have found that our clients highly value our independence because it guarantees that we are able to provide them with objective and unbiased advice, free from any conflict of interests.