Our Approach To Value Add
Investment banks are fee driven to close transactions. Investment banks typically will be attracted to service the larger corporations in any given country and will not normally value add in the role of consultant to improve operating efficiencies of client companies.
Arka Projects enhances the interest of business owners during the due diligence process in addition to provision of the traditional financial intermediation role-played by investment banks and brokerages through our partners. We are confident of building on our niche as an advisory firm as our business model allows us to compete effectively without compromising on our product quality.
For middle market business owners, an initial hurdle is upfront costs and subsequent transaction costs for traditional investment banking transactions; eg large upfront payments for the various professional parties for IPO transactions and agency fees for bond issues. At Arka Projects we align our interest with the business client's owner/management for the financial advisory and intermediation role.
Our role as financial advisor will see us undertake the role as transaction treasury manager for business clients to build sustainable growth platforms through maximizing returns and minimizing transaction costs and through value add advisory work for initiating business architecture to support sustainable business growth.
We value add to business owners during our assignments as we will make company specific recommendations and seek to initiate the business architecture for clients for the following:Governance
We have completed a full technical proposal for Corporate Governance Reform for the Stock Exchange Commission of Pakistan. For our clients we will seek to institute a Management Committee overseeing all of the client firm's policy decisions, new business and product approvals, and management of the firm's overall operational, control, reputation and legal risks.
The client firm's Executive Committee, composed of operating heads of our client's business units, will periodically review activities of all existing businesses through analysis and discussion of all relevant issues during monthly operations meetings. The Executive Committee's mission and objective is to incorporate and institute transparency for all relevant stakeholders at regular intervals and resolve operating issues as they arise.Business Alliances
We have alliances with a Big 4 Accountant, an international law firm and an international broker with offices in New York, London, Tokyo, Hong Kong and Singapore for clients’ pre-IPO consulting requirements, and distribution of bonds and commercial paper for enhancing cost effectiveness of our capital market solutions and service capabilities. We hope to achieve the same potential synergies for our clients. As a firm, our own network to CEOs and business decision-makers allow for value add to a client’s specific need.Relationships
Arka Projects provides a network of value-adding relationships through a community of available independent directors (for companies looking to strengthen their Boards before listing), business decision-makers and financing sources. As a firm, we achieve this through cooperative relationships with commercial banks and financial institutions, and through contacts at Management level in listed corporations in various Asian countries.Minimizing transaction exploratory costs
An example of our innovative approach is the cost competitive upfront payment of S$30,000 for legal expenses for an international lawyer’s service, travel expenses, due diligence, structuring and distribution fees. The total legal expense, due diligence, structuring and distribution fees for a un-rated/ commercial paper/bonds transaction will be collected only after the successful conclusion of a bonds transaction, at the proceeds disbursement stage.
If a transaction is not successful for whatever reasons, the S$30,000 is treated as abortive fees and the client is not liable for further legal expenses. The costs compare very well with investment banking and agency fees for exploratory fees charged by existing service providers in the capital markets. This is because our approach is success fee driven.
Similar solutions are available for IPO preparations, whereby business owners will not have to incur hefty upfront expenses to find that a listing application will be ultimately rejected for whatsoever reasons.
We offer a one-stop management service to minimize agency fees for capital market transactions. This approach will be disclosed to bona fide clients for pre-IPO consulting services and un-rated commercial paper / bonds issuing firms.
In mid 2005, Arka Projects has signed an agreement with a large international broker to originate un-rated commercial paper / bond transactions for investors in Hong Kong, Europe and institutional investors in markets in the broker's database. The bond transactions will be for issue of un-rated commercial paper. Potential client companies will have to clear their funding propositions with the international broker's credit committee before spending a single cent . This agreement strengthens our competencies in bringing timely financing solutions for cash strapped business owners with a proven management record, sound cash flows and viable business models in Asian countries.
Our business network will allow our clients access to pre-IPO investors and large underwriters (if the capital market transaction is for an IPO in Singapore).
At Arka Projects we have grown from our experience as a financial advisory firm improving operating efficiencies of client companies to include transaction consummation. Consulting assignments for statutory board SPRING’s Financial Advisor Program require improvements measurable by a minimum 20% increase in revenues of clients or a minimum 20% decrease in operating expenses (including interest expenses) of client companies. From our consulting experience, we have gone on to technical proposals and successful consulting experiences for capital market initiatives led by the World Bank and the Asian Development Bank in diverse countries including Pakistan, Laos, Vietnam and Indonesia.
We have honed our knowledge and experience as a capital markets advisor through the years and look forward to being your partner in progress and prosperity, as your future success will be our own future success.