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    Using Company Financials in Financing Decision Making

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    Kamrul Huda
    This document discusses using company financials in financing decision making. It outlines different types of external financing like IPOs and debt products. It also discusses why market-based external financing can provide benefits like low costs, customization, and foreign investment. The document then covers industry structure factors and analyzing a company's strengths, weaknesses, opportunities, and threats. It provides details on the process of listing a company on exchanges, approaches to valuation, sensitivity analysis, and determining the final proceeds amount from an IPO.

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    Using Company Financials in Financing Decision Making

    Uploaded by

    Kamrul Huda
    26 views8 pages
    This document discusses using company financials in financing decision making. It outlines different types of external financing like IPOs and debt products. It also discusses why market-based external financing can provide benefits like low costs, customization, and foreign investment. The document then covers industry structure factors and analyzing a company's strengths, weaknesses, opportunities, and threats. It provides details on the process of listing a company on exchanges, approaches to valuation, sensitivity analysis, and determining the final proceeds amount from an IPO.

    Original Title

    Lecture_BIM

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    This document discusses using company financials in financing decision making. It outlines different types of external financing like IPOs and debt products. It also discusses why market-based external financing can provide benefits like low costs, customization, and foreign investment. The document then covers industry structure factors and analyzing a company's strengths, weaknesses, opportunities, and threats. It provides details on the process of listing a company on exchanges, approaches to valuation, sensitivity analysis, and determining the final proceeds amount from an IPO.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    26 views8 pages

    Using Company Financials in Financing Decision Making

    Uploaded by

    Kamrul Huda
    This document discusses using company financials in financing decision making. It outlines different types of external financing like IPOs and debt products. It also discusses why market-based external financing can provide benefits like low costs, customization, and foreign investment. The document then covers industry structure factors and analyzing a company's strengths, weaknesses, opportunities, and threats. It provides details on the process of listing a company on exchanges, approaches to valuation, sensitivity analysis, and determining the final proceeds amount from an IPO.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    Using Company Financials

    in
    Financing Decision Making
    Birds Eye-View

    Determining Financing Requirements

    Classification of Capital Market based External Financing


     IPO
     Debt Product
     Commercial Paper (CP), new in horizon

    Why Market based External Financing?


     Low cost

     Customization
     Foreign Investment

     Easy to monitoring
     Off-set the bank loan
    Industry Structure

     Factors that affect growth


     Government regulations
     Leading businesses in the industry
    Bargaining power of suppliers
     Estimated size of the industry
    Bargaining power of buyers
     Establish trends in sales over recent
    years Threat of new entrants
     Determine current Threat of substitutes, and
    operational/management trends within
    Rivalry among competitors.
    the industry?
     Is the industry seasonal?
     Is the industry sensitive to economic
    fluctuations?
    Company Strengths
    S W
    TRENGTHS EAKNESSES

    • Experience in ISP Market • No local content


    • Known and respected brand • Infrastructure dependent
    • Innovation in business on 3rd parties
    solutions • Purchasing behavior
    • Strong partners dependent on profit
    • Experienced human capital
    • Network management and
    economics knowledge
    • Adapting new changes

    O T
    HREATS
    PPORTUNITIES

    • Relationship with telcos, • Entry of telcos/cable


    vendors and local regulators companies
    • Mergers with content • Price competition
    • Saturation of the market
    providers
    • Acquire smaller enterprises
    • Development of web
    applications

    Positive Negative
    Process of Listing in Exchanges

     Prepare Company for the listing


    1. Capital Structure (Min 30 cr. paid-up)
    2. Capital Structure analysis
    • Base Capital
    • Bonus Declarations
    • Strengthen Retain Earnings
    • Private Placement
     Appoint Listing Intermediaries
    1. Issue Manager
    2. Underwriter
    3. Banker to the issuer
     Application to BSEC
    1. IM
    2. Prospectus
    Valuation of the company

     Valuation for Private Placement


     Valuation for IPO

    1. Book-Building Method
    2. Traditional Method
     Valuation Terminology

    1. EV/EBITDA
    2. EPS Multiplier

    3. Residual Income Valuation

    4. DCF
     Match Valuation
     Use of IPO Proceeds
    Sensitivity Analysis of the valuation

     Sensitivity test using Excel

     Decision making under sensitivity points

     Final Value Derivations

     Proceeds Amount = Valuation Price


    Thank You

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