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| Activity frame |
EU funding consultancy services |
Demonstrations  |
- PHILOSOPHY
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All companies use money as a resource, for which they have to pay. Their management should ensure that those payments are met.
The companies, that constantly make enough profit to pay the market price of their capital, usually prosper.
The trade companies, that are unable in a considerable time period to respond to the active market prices of capital, usually do not survive or at least have to restructure and change their owner.
Correlations in corporate finance are the starting points for trade companies management. The Key Management Coefficients illustrate their aims and standards, and direct their managers toward the most productive long-term strategies and most effective short-term decisions.
Definition and optimization of the Key Management Coefficients for any type of company or business project is performed by developing Analyses, Evaluations, Grounds and Business plans. Efficient Investor's Control is performed on that basis as well.
- RANGE
- The accents of “Financial Engineering” Ltd. activity range are:
- » FINANCE ENGINEERING AND FUNDAMENTAL ANALYSIS
- - Financial Analyses of companies’ functioning, agreements and transactions.
- Business Evaluations of shares and other fixed assets.
- Financial Grounds for acquiring of share and loan capital.
- Financial Business Plans (Feasibility Studies).
- » FINANCE INVESTOR'S CONTROL
- - Regarding the functioning of companies and other stuctures.
- Regarding the realization of investment projects.
- » PROJECT FINANCING ANALYTICAL SERVICE
- - Bank financing.
- Non- Bank financing.
- Grant co-financing.
- » INVESTMENT DECISION ANALYTICAL SERVICE
- - Fixed Assets transactions
- Securities transactions
- Securities Emissions
- Publicity materials for Offering of Securities
- Securities Tender Offers
- Management of individual Securities portfolio
- » EU FUNDING CONSULTANCY SERVICES
- - Cost-Benefit Analysis of Investment Projects
- EU projects complete grant service.
- “FINANCIAL ENGINEERING” Ltd. performs single orders as well as current activities related to financial planning, analyzing, evaluating and monitoring of the functioning of companies.
The high quality level of the services offered complies fully with the international and national accounting, analytical, evaluating and monitoring standards, e.g. those of the European Investment Bank, the International Finance Corporation (IFC) - Washington DC, USA and similar structures in the world and Bulgaria.
- TYPES OF STUDIES PERFORMED
- » FINANCIAL ANALYSES
- Financial analyses of the functioning of trade companies and structures on different levels include preparation and making of full financial statements and pro-form accounts in “Financial Accounting” and “Management Accounting” formats for different purposes, evaluation of the results of any economic activity and exercising of financial control.
- » BUSINESS EVALUATIONS
- Evaluations of the companies common stock, of differentiated parts of companies and others are based and made in accordance with the requirements for unified international Standards for professional business evaluation and the standards and methods for business evaluation according to the operative Bulgarian legal system.
- » FINANCIAL GROUNDS
- Financial grounds serve for acquiring Share Capital, declaring of Bond loans, Investment or Working Capital Credit demands or restructuring and others. They are based on and made in accordance with the common world practice standards and meet all kinds of specific requirements of Bulgarian and foreign, bank and non-bank institutions regarding the properties, contents and presentation form.
- » FINANCIAL BUSINESS PLANS
- Financial Business Plans are comprehensive Feasibility Studies, incl. Cost-Benefit Analyses, of the realization of investment and other business projects and of Programs for development of trade companies with defining the business tasks laid before their management.
- The Studies satisfy the highest standards of world practice in the Feasibility Study sphere regarding financial prognosis, modeling, analyzing and evaluating.
A comprehensive multivariate projection, analysis, evaluation, management and optimization of cash flows, critical business ratios, key management coefficients, corporate value, financial and relative risk are made. The net present value and the internal rate of return of the investments are determined.
Various requirements, both specific and of principle, set as a task by the assigners are met.
The studies can be presented both in Bulgarian and English.
Financial analyses, Business Evaluations, Financial Grounds, Financial Business Plans and Investor's Control about companies (business projects), functioning (carried out) outside the territory of the Republic of Bulgaria are performed in conformity with the local operative legislation by complete localization regarding the whole normative order, concerning the matter treated.
- APPLICATION OF STUDIES
- - Establishment of new and restructuring of active trade companies.
- Increase of share capital and preparation for issuing of securities plan.
- Formation of joint ventures.
- Mergers and acquisitions.
- Raising of loan capital, increasing and restructuring of credit lines.
- Capital budgeting.
- Product planning.
- Introducing new activities, projects and market strategies.
- Establishment of financial demands for future growth.
- Projecting increase of investment profits and market share.
- Carrying out of business combinations.
- Tax optimization.
- Defining finance policy regarding management and personnel of the companies.
- Application for co-financing by European Union funds.
- Fulfillment of consequent investor's control etc.
- WORKING TOOLS
- The working tools for performing the studies in the field of corporate finance is a “Finance engineering and business evaluation” system (FEBE).
FEBE is an integrated system for economic and mathematical modeling, financial engineering, management accounting, financial analysis and business evaluation.
FEBE has been developed and constantly updated using leading world technologies and software based on project oriented CASE tools. This enables effective development, adjustment and localization according to the specific requirements when making decisions in the sphere of investment, organizational and financial company planning and management as well as evaluation of the corporate value of the companies for any kind of business.
FEBE uses universal international standards, software and formats, which are localized with regard to the Bulgarian Law of accounting, International (Bulgarian) accounting standards, Law of commerce, Law of public offering of securities, Tax laws and the whole normative order concerning the treated matter.
FEBE presents all performed calculations, analyses, evaluations and suggestions by easily understandable and comprehensible, both for the foreign and Bulgarian investors, financial illustrative means of expression such as are used in the common practice and business environment in the European Union and United States.
- STRUCTURE OF THE STUDIES
- The studies generalize the incoming operative information and the great number of finance accounts and pro-form accounts into one current to the day of the study financial model. The pro-form financial accounts composed for the purposes of the analyses and evaluations correspond to the International (Bulgarian) Standards for Financial Reports and book-keeping.
The research frame includes:
- » MODULE 1: EXECUTIVE SUMMARY.
- Section 1.1.: Summarized definition of the Incoming and Outgoing cash flows movement. Structural analysis.
Section 1.2.: Summarized definition of the Balance sheet requisites movement.
Section 1.3.: Chart Accents of: Activity Finance Results; Cost-Benefit Analysis; Multivariate Business Evaluation Analysis; Finance Analysis for Evaluation of Key Management Coefficients.
- » MODULE 2: INCOMING ACCOUNTING AND PROJECTED OPERATIVE INFORMATION ABOUT THE COMPANY (BUSINESS PROJECT).
- Section 2.1.: Sales Income with defining of target markets, nomenclature and quantity of the products (services), price strategy and market share.
Section 2.2.: Activity Operating Expenses.
Section 2.3.: Investment Plan with defined linear time schedule.
Section 2.4.: Finance Operations.
Section 2.5.: Capital Structure Model according to Sources of Financing with detail sinking plans for the used Debt Capital under any form.
- » MODULE 3: FINANCIAL HISTORY AND FINANCE BUSINESS PLAN (PROJECTION OF THE BUSINESS POTENTIAL).
- PROFIT AND LOSS ACCOUNTS (STATEMENTS OF EARNINGS)
According to International (Bulgarian) accounting standard № 1: "Financial Reports Presentation".
BALANCE SHEETS
According to International (Bulgarian) accounting standard № 1: "Financial Reports Presentation".
STATEMENTS OF CASH FLOWS
According to International (Bulgarian) accounting standard № 7: "Cash Flows Statements".
STATEMENTS OF CHANGES IN FINANCIAL POSITION - CASH BASIS
TAX CALCULATIONS
INVESTMENTS FOR FIXED ASSETS
WRITTEN OFF FIXED ASSETS
AMORTIZATION PLAN
The Financial business plan (Projection of the business potential) includes the needed number of projected years in cross section by months, quarters or years depending on the specific demands.
- » MODULE 4: FINANCIAL AND ECONOMIC COST-BENEFIT ANALYSIS.
SENSIBILITY AND RISK ANALYSIS EVALUATION.
- According to Guide to Cost-Benefit analysis of investment projects, approved by the EUROPEAN COMMISSION – DIRECTORATE GENERAL “REGIONAL POLICY”.
- FINANCIAL AND ECONOMIC ANALYSIS:
- Table 4-1: TOTAL INVESTMENT COSTS.
Table 4-2: OPERATING COSTS AND REVENUES. TAXES.
Table 4-3: EVALUATION OF THE FINANCIAL RETURN OF THE INVESTMENT. Basic Scenario.
Table 4-4: SOURCES OF FINANCING.
Table 4-5: FINANCIAL SUSTAINABILITY.
Table 4-6: EVALUATION OF THE FINANCIAL RETURN OF THE NATIONAL PRIVATE AND PUBLIC CAPITAL. Basic Scenario.
Table 4-7: EVALUATION OF THE ECONOMIC RETURN OF THE INVESTMENT. Basic Scenario.
- SENSIBILITY AND BUSINESS RISK:
- Table 4-8: SENSIBILITY AND BUSINESS RISK EVALUATION ANALYSIS.
Table 4-3-1 and -2: EVALUATION OF THE FINANCIAL RETURN OF THE INVESTMENT. Optimistic and Pessimistic Scenario.
Table 4-6-1 and -2: EVALUATION OF THE FINANCIAL RETURN OF THE NATIONAL PRIVATE AND PUBLIC CAPITAL. Optimistic and Pessimistic Scenario.
Table 4-7-1 and -2: EVALUATION OF THE ECONOMIC RETURN OF THE INVESTMENT. Optimistic and Pessimistic Scenario.
- » MODULE 5: CURRENT COMMON STOCK (SHARES) EVALUATION ANALYSIS.
- NET BOOK VALUE
CAPITALIZATION OF EARNINGS
DIVIDEND PAYING CAPACITY
DISCOUNTED FUTURE EARNINGS
DISCOUNTED FUTURE NET CASH FLOW
AVERAGE WEIGHED EVALUATION ("FAIR VALUE ")
INCOMING INFORMATION FOR BUSINESS EVALUATION ANALYSIS - Discounted Future Net Cash Flow
- » MODULE 6: FINANCE ANALYSIS FOR EVALUATION OF KEY MANAGEMENT COEFFICIENTS.
- STANDARD ANALYSIS OF FINANCE COEFFICIENTS
Test of operating and general effectiveness
Test of profitability measures
Test of investment utilization
Test of financial condition
Test of financial leverage
Test of Growth Performance
Break-Even Analysis
CORPORATE FINANCE ANALYSIS
Corporate Evaluation test – General status according to the exchange Capitalization rate.
Test of the financial risk rate - Altman’s Z-Factor analysis.
ROBERT MORICE’S FINANCIAL ANALYSIS
Assets %
Liabilities %
Income data %
Ratios
- FINANCE INVESTOR'S CONTROL
- Investor's Control is carried out on the basis of Feasibility Studies from realization of business projects and trade companies’ development programs as a standard for analysis and evaluation of the received current results.
Investor's control currently determines, analyzes and evaluates:
1. MONTHLY: The trade company Operative result and Business potential for generating a Cash Flow that covers debt payments.
2. QUARTERLY: The level of finance efficiency from applying the development programs by the use of a system of indicators for financial analysis in accordance with the world standards.
3. QUARTERLY: The movement of market capitalization of trade company shares by applying a system for multivariate stationary and current business evaluation in accordance with the world standards.
All kinds of general and specific demands, defined as a task from the assignors, will be satisfied.
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