Our Competitive StrengthOur competitive strength is helping client companies arrange financings through affordable exploratory work for accessing capital markets
Arka Projects continually seeks to help clients optimize the capital structure to take advantage of growth opportunities, through taking advantage of opportunities in the capital markets to obtain lower cost funds or added flexibility eg. to raise debt funding when equity valuations are not attractive.
At the appropriate time, Arka Projects as pre-IPO consultant will assist client companies to go public, generally maximizing proceeds from the listing exercise to de-leverage and reduce the inherent risk for the owners and its investors.
Our consulting approach is through proactively analyzing business plans and results, assist in the formulation of business strategy, and evaluating client’s management.
Lower exploratory costs and consulting value add
Our efforts from previous assignments tend to translate into superior results, with many of Arka Projects' client companies posting a 20% increase in revenues or a 20% decrease in operating expenses after the consulting assignment.
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 be serving the middle market business owners of privately owned business enterprise with strong business fundamentals in their operating markets.
Investment banks do not normally vale add in the role of consultant to improve operating efficiencies of client companies. We have lowered exploratory costs significantly through our approach and have the experience 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 network. We initiate business architecture for building sustainable business growth platforms for clients when required.Previous prohibitive costs for exploratory capital markets work
For 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 hefty agency fees for bond issues.
At Arka Projects we align our interest with the business client's owner/management for the financial 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 costs through value add advisory work. An example is exploratory costs. The total legal expense for an international lawyer 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 structuring, distribution and legal expenses for the transaction compared with the hefty upfront expenditure for a typical bonds transaction.Conclusion
We do not pride ourselves in low exploratory costs offered as being particularly innovative if the service does not contribute to the client. We are proud to offer innovative provision and delivery of success fee driven transactions to the privately owned middle market, which is underserved in China and large parts of Asia. We hope to contribute to the growth of these companies, which provide employment in the communities where they operate.
Taken together, it is the experience, creativity, and resources that Arka Projects brings to bear on all aspects of its activities that set the firm apart - from transaction origination to financing, the formulation and execution of its strategy for realizing the shareholder value of client firms. Arka Projects is proud that the mode and scope of our service provision capabilities has not been offered to date for the underserved privately owned middle market corporations in China and parts of Asia.