Radhan's Approach to Corporate Finance Services (RACOFS) provides a systematic 6-phase methodology for optimizing corporate finance solutions tailored to each client's needs and available sources. The phases include pre-engagement capital structure analysis, full client analysis, identifying viable options, process design, and delivery. RACOFS aims to develop flexible yet robust capital structures through in-depth internal/external analysis and dynamic financial modeling to map optimal sources.

1. RACOFS© - Radhan’s Approach to Corporate Finance Services

2. RACOFS© - The Edge of Professional Approach
Radhan is based on the insight that corporate finance is a profession.
Therefore, Radhan is constantly engaged in developing and testing methodologies to create solutions that optimize
current market opportunities without compromising future sustainability.
Though based on rigorous analytical tools, RACOFS is far from being academic. It is a systemized optimization of corporate
finance solutions, based on the specific needs of each client on the one hand and an accurate mapping of available
sources on the other hand. It also incorporates the best practices of approaching each finance provider according to each
of the providers regulations and standards.
RACOFS relates to all aspects of the interface between Radhan and its clients, from the pre-engagement analysis up to the
completion. In some cases only part of the RACOFS methodology is relevant and in these cases it is applied accordingly.
Radhan actively encouragers discourse with both clients and finance providers regarding RACOFS and, as much as
possible, is transparent in sharing its elements.

3. Phase I
Pre-NDA
Capital
Structure
Analysis
Capital Structure
Classification
Capital Structure
Adaptability
Phase II
Client
Engagement
CSC - E CSC - I
CSC - R CSC - U
CSC - C
CSA - A CSA - B
CSA - C
Post NDA CS Analysis
Terms of Reference
Engagement Letter
Phase III
Full Analysis
Phase IV
Process
Crossroad
Phase V
Process
Design
Phase VI
Delivery
Internal Analysis
Financial Model
Funded
Instruments
(debt, equity, m&a,
restructuring,
Structured finance)
Transaction
Management
External Analysis
Benchmark Analysis
Forecast Analysis
Balance Sheet
Development
KPI
Volatility Analysis
Value Chain
Competitive Setting
Exogenous Impacts
business
financial
Assumption Analysis
Back testing
Financial
Sources Matrix
Term Sheet
Preparation
Negotiation
Planning
Process
Scheduling
Non Funded
Instruments
(credit rating, non deal
roadshow)
Targeted
Presentation
Analytical
Backup
Commercial
Negotiations
Legal
Completion
Radhan Data
Banks
Capital
Structure
Industry Map
Source Map
M&A Matrix
Course of
Action

4. While the capital structure
does not restrain the ability
of the corporation to achieve
its goal, the structure can be
more efficient usually from
cost perspective or capital
deployment
Phase I
Pre-NDA
Capital
Structure
Analysis
Capital Structure
Classification
Capital Structure
Adaptability
CSC - E
CSC - I
CSC - R
CSC - U CSC - C
CSA - A CSA - B CSA - C
Phase II
Client
Engagement
Phase III
Full Analysis
Phase IV
Process
Crossroad
Phase V
Process
Design
Phase VI
Delivery
Attends to identifying
the potential gap
between the existing
capital structure and
the corporate goals.
This classification is
crucial as it assists in
defining the motives
for a transaction and
setting its concrete
objectives.
The capital structure is
suitable to the
corporation’s goals and
is set in optimal terms
and conditions
Capital structure that
does not allow the
corporation to fulfill its
plans because of
constraints in cash flow
or available funds
A capital structure that
will require
refinancing within
two years in order for
the corporation to
meet its obligations
A capital
structure that
includes
obligations in
default, or will
do so with high
degree of
certainty
Capital structure adaptability is
ranked A to C, A reflecting
flexibility and therefore low
expected complexity; B medium
complexity and C rigidness and
high complexity
This scale is an initial opinion as to
the legal and practical complexity of
changing the existing capital
structure. It is based on a basic
analysis of the structure in
parameters such as:
• Legal terms of the indentures
• Number of stakeholders
• Public/ Private securities
• Assets available as security
• Liquidity

5. Phase II
Client
Engagement
Phase I
Pre-NDA
Capital
Structure
Analysis
Phase III
Full Analysis
Phase IV
Process
Crossroad
Phase V
Process
Design
Phase VI
Delivery
Post NDA CS Analysis
Terms of Reference
Engagement Letter
Since most of Radhan’s services are transaction based, the engagement with the client is
usually preceded with an initial feasibility stage which includes the capital structure analysis.
Sometimes, of course, the client requests a segment of the full scale services are rendered
(such as rating advisory or IPO advisory). Even in these cases, Radhan aims to understand
the nature of the service in the broader perspective and refrains from a technical approach
In cases were the client is identified by Radhan the analysis is first based on public information
and later on, after a NDA is signed on confidential information
Based on the capital structure analysis the terms of reference for the engagement are
mutually agreed upon with the client and only then the client is engaged

6. Phase III
Full Analysis
Phase I
Pre-NDA
Capital
Structure
Analysis
Phase II
Client
Engagement
Phase IV
Process
Crossroad
Phase V
Process
Design
Phase VI
Delivery
Internal Analysis
KPI
Efficient capital structure is
based upon a deep
understanding of the
corporation’s business
positioning and required
capital allocation. Therefore
Radhan’s approach to a
corporate finance
transaction follows through
an analysis of the
corporation and its
environment
This analysis does not
presume to be of strategic
nature, but rather to reflect
the impact of different
potential scenarios on the
capital structure and devise a
structure that will be solid
enough to withstand the
possible setbacks ahead. The
robustness of the capital
structure takes into account
the risk appetite of the
decision makers in the
corporation. We do not
assume to replace their
judgment, but rather to put a
“risk tag” on the alternatives
The evolvement of the balance sheet over a three to five years time
period (depends on the industry) is an inclusive analysis of how the
accounting and business facets of the corporation interact as well as how
the financials are influenced by different events. Over this timeframe it is
also possible to understand how the p&l and cash plow influence the
balance sheet and how flexible is the capital structure
Balance Sheet
Development
The key performance indicators will be defined based on the analysis of
the parameters that influenced the balance sheet development

7. Phase III
Full Analysis
Phase I
Pre-NDA
Capital
Structure
Analysis
Phase II
Client
Engagement
Phase IV
Process
Crossroad
Phase V
Process
Design
Phase VI
Delivery
External Analysis
Value Chain
Competitive Setting
Exogenous Impacts
The location of the company in the value chain of its industry; the
dependency on suppliers, clients and industry level trends
The relative advantage of the corporation and the competitive dynamics
between it and its peers
The external factors that influence the corporation such as regulation,
forex etc.

8. Phase III
Full Analysis
Phase I
Pre-NDA
Capital
Structure
Analysis
Phase II
Client
Engagement
Phase IV
Process
Crossroad
Phase V
Process
Design
Phase VI
Delivery
Comparative qualitative and quantitative inquiries into the business strategies
and operations of the comparables
Based on the analysis conducted the range of possible scenarios is defined to
model the potential outcomes and their financial implications
Benchmark Analysis
Volatility Analysis
business
financial financial benchmarking to the comparables. Examination of the leverage,
financial profile and covenants typical to the industry

9. Phase III
Full Analysis
Phase I
Pre-NDA
Capital
Structure
Analysis
Phase II
Client
Engagement
Phase IV
Process
Crossroad
Phase V
Process
Design
Phase VI
Delivery
Forecast Analysis
Assumption Analysis
Back testing
drilling down to the assumptions driving the forecast and classifying this
assumptions according to their source between market changes and internal
changes. Then each of the category is tested as to understand to what degree
these assumptions can be substantiated
Once the assumptions are identified, the expected forecast is back tested to
examine what would have been the outcome in the past under these
assumptions. Any discrepancies between the forecast and the back testing
results are analyzed

10. Phase IV
Process
Crossroad
Phase I
Pre-NDA
Capital
Structure
Analysis
Phase II
Client
Engagement
Phase III
Full
Analysis
Phase V
Process
Design
Phase VI
Delivery
The financial model is a compilation of the full analysis and the different financial
solutions from the sources mapped. It is a dynamic decision support tool that
incorporates the business dynamics, the financial reports (past and forecasted) and
the financial options
Based on Radhan Data Banks the specific relevant financial sources for the
corporation are analyzed based on different parameters including: potential
transaction size, price range, expected duration, required securities and covenants,
process complexity and cost
Financial Model
Financial
Sources Matrix
Course of
Action
Based on the financial model, and after discussion with the corporation on the
different viable alternatives, a chosen course of action is decided upon. At this stage
it does not necessarily imply a specific term sheet, but the process through which
the financing selection will take place

11. Phase V
Process
Design
Phase I
Pre-NDA
Capital
Structure
Analysis
Phase II
Client
Engagement
Phase III
Full
Analysis
Phase IV
Process
Crossroad
Phase VI
Delivery
Funded
Instruments
(debt, equity, m&a,
restructuring,
Structured finance)
Term Sheet
Preparation
Negotiation
Planning
Process
Scheduling
Non Funded
Instruments
(credit rating, non deal
roadshow)
Targeted
Presentation
The term sheet includes all relevant parameters: volume, price and
business and legal major clauses. It is adjusted to meet each financial
source requirements
Setting the parameters on which the negotiation will be held. It is also
crucial to preset the covenant and security packages (in case of debt) or
option and price mechanisms (in case of equity); analyzing the
negotiations dynamics and preparing for it
The timetable for the transaction is also preset, especially since multiple
tasks are assigned to different teams (accounting, legal etc.)
The targeted presentation is the marketing material designated
specifically for each potential financing source it includes relevant in
formation from the full analysis stage and the financial model
Rating agencies use matrices and
methodologies that are constantly
changing and are industry specific.
Radhan has intimate knowledge of
the processes and models used by
the rating agencies.
The outputs of this phase are: a
financial model adjusted to the
format required by the rating
agency and a full presentation of
the argument, that serves as
framework for the analysis
Non-deal road-shows are planned
in a similar manner to an issuance
road show

12. Phase VI
Delivery
Phase I
Pre-NDA
Capital
Structure
Analysis
Phase II
Client
Engagement
Phase III
Full
Analysis
Phase IV
Process
Crossroad
Phase V
Process
Design
Transaction
Management
Analytical
Backup
Commercial
Negotiations
Legal
Completion
oversee the correlation between the commercial understandings and the legal outcome and
balancing the protection of the client’s legal rights with the need business flexibility
Manage the process proactively according to the designed plan in order to arrive at the best
possible result for the client
Use a supporting model adjusted to meet regulatory restrictions while enabling investors’ analysts
to single out the investment in a easy, structured manner
Execute of the transaction planned in the previous phases. It includes management of all related
facets of the investors road show or any other competitive process up to completion

13. Radhan Data
Banks
Capital
Structure
Industry Map
Source Map
M&A Matrix Matrix of buy side and sell side opportunities based on an on going dialogue with private
and public corporations and funds
CSC
CSA
A B C
E
I
R
U
C
Corporation X
Corporation Y
Corporation Z
Radhan systematically develops and monitors Data Banks that include updated information regarding
its operations. The Data Banks are valuable in expediting processes without comprising their quality
The comparable corporations are sorted into
industry groups. Each company is located on an axis
which includes the Capital Structure Classification
(CSC) scale and the Capital Structure Adaptability
(CSA) scale.
Each corporation is described in a circle in a size
that is correlated to the capital base size (financial
debt + equity each represented in different color).
An up to date detailed list of specific potential financing sources with as much data on each
potential source as possible (last transactions, investment policy, etc.)