Corporate Finance Advisory

AfriZone offers a full range of Corporate Finance Advisory Services, such as Working Capital Loans and Bank Overdraft.

An initial public offering (IPO) can be a complex and challenging process, but it is one of the most valuable opportunities for companies to raise capital, improve their reputation and credibility, and allows companies and shareholders alike to gain tax-exempt dividends from investment. It is crucial for a company intending to go public to understand the steps involved in conducting an IPO on the Stock Exchange.

Opening a company to the public market allows it to tap into a vast pool of potential investors and secure the capital it needs to fuel the company’s growth and success.

At AfriZone, we are a key partner throughout the offering process. Our legal team will advise clients on possible IPO restrictions arising from contract, and assist in ensuring compliance with relevant laws and regulations governing the process. Additionally, our lawyers are generally involved in drafting the registration statement and prospectus. We also assist with financial advisory services, which include:

● Conducting due diligence;
● Establishing standard internal control systems;
● Restructuring the company as needed, including business, equity and shareholding
● Preparing documents and information for the IPO filing and listing application; and
● Distributing securities or employing an underwriter to distribute securities.

Working Capital Loan Advisory – A company’s working capital is defined as its current assets minus current liabilities.

Current assets are cash, short-term receivables, trade debtors, inventory and other assets and claims on assets that are expected to convert into cash within a year.

Current liabilities are short-term debts such as trade creditors, accounts payable, accrued liabilities and other liabilities that are to be paid off within one year.

While assessing a company’s creditworthiness, banks also investigate the firm’s working capital ratio, or current ratio, which is defined as the ratio between the company’s current assets and current liabilities. While a relatively low current ratio indicates that the company is highly indebted, (a ratio lower than 1 indicates that the company’s current liabilities exceed its current assets). A relatively high current ratio denotes ineffective management, as this may imply that the company is not investing its excess cash or has too much inventory.

At AfriZone, we can assist you with your working capital financing requirements, which will give your business a boost for handling daily operations as well as pursuing long-term objectives.

Bank Overdraft – Bank overdraft, also known as cash credit, is an extensively used means of short-term financing, which may be exploited by SME’s and large corporations alike. It is a credit facility granted by a commercial bank to clients that require flexibility in handling their business. The borrower can utilize the facility by overdrawing its account up to the permitted overdraft limit.

This credit facility is considered to be flexible because an interest rate is charged by the bank, only on the portion of money that is actually used and not on the total amount that is granted. This feature also makes bank overdrafts cost-effective, provided the borrower continually deposits inward cash flows, as soon as they are received, to save on interest costs.

At AfriZone, we can assist you in obtaining a bank overdraft for your company to increase your flexibility in running your daily operations.

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