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Presentation Apr 19,2009


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Presentation on Mobius Strip Capital Advisors

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Presentation Apr 19,2009

  2. 2. THE FUNDAMENTAL CONVENTIONAL BUSINESS MODEL Capital Sales Equity Investors Operating  Operating Products and Products and Asset  Asset Cash Assets use Services Banks Return Costs Globally, an environment prevailed , where businesses, not wishing to be left out of the race to grow bigger  Globally an environment prevailed where businesses not wishing to be left out of the race to grow bigger within the shortest possible time, raised both equity and debt capital heavily to fund ambitious expansions,  acquisitions and diversifications. It was all about maximising growth opportunities, and financing this was not  an issue .  A sudden change in business environment have left equity investors with stuck investments, increase in debt  dd h b h lf h k db and inventories of companies leading to tight liquidity.
  3. 3. THE CURRENT ENVIRONMENT GLOBAL FINANCIAL CRISIS GLOBAL ECONOMIC CRISIS ■ Massive destruction of capital pool ■ Recession in major economies ■ Lack of confidence ■ Lower growth in others g ■ Poor liquidity in banking system ■ Lower consumption and demand Capital Sales Equity Investors Equity Investors Operating  Products and Asset  Cash Assets use Services Banks Return Rt Costs Ct RESULT: ■ Lower Sales and Profits ■ Reduced cash flows ■ Lower Return on Capital Employed ■ Reduced Market Capitalisation ■ Lower Enterprise Valuation
  4. 4. FUNDING  OPTIONS AVAILABLE Long Term Equity Shares Equity Preference Shares Options  and Warrants Options and Warrants Debentures Bonds Debt Instruments Convertibles Funding sources F di Term Loans Bank borrowings Bank borrowings Cash‐Credit/ Overdraft Leasing/ Hire‐Purchase* L i / Hi P h * Non‐Bank Finance Factoring Short Term
  5. 5. NAVIGATING THROUGH DIFFICULT TIMES THE FUTURE BUSINESS ENVIRONMENT IS LIKELY TO BE ■ Less free‐wheeling ■ More tightly regulated gyg ■ More risk averse Businesses will need to have a fresh perspective on all constituents of the cycle  INVESTMENTS ASSETS Equity Investors Operating  Products and Asset  Cash Assets At Services Si use Banks ■ Build  ■ Raise just  Basic goods  g j ■ Optimize  p Identify stable and only  and services the right asset  liquid players ■ Healthcare essentials amount of  utilization ■ Education ■ Dispose  capital ■ Trim  ■ Infrastruc Infrastruc‐ ■ Converse  non‐core  excess flab ture assets Cash ■ Staples TIP: The transaction needs to strengthen a company’s competitive position, i.e., cost position/  brand strength/ customer loyalty‐ factors that do not change with economic cycles CHALLENGE: Traditionally profitable businesses are finding it difficult to raise capital owing to tight  liquidity and higher investors’/lenders’ risk‐aversion 
  6. 6. SERVICES Our corporate finance advisory services covers the following  areas: ■ Independent Advisory ■ Fund Raising ■ Corporate Restructuring ■ Share Placements ■ Private Equity ■ M&A Services that help Clients manage growth effectively We achieve client objectives by employing  back‐to‐basics  I‐Banking principles We achieve client objectives by employing “back to basics” I Banking principles
  7. 7. CONCLUSION Our reputation has caused many clients to come to us because they have  problems that were not solved by others. Each case we receive has unique features: paradoxes, anomalies, and other  contradictory conditions‐we are known to have the ability to develop  unique solutions to complex problems.  Thank  You MOBIUS  STRIP CAPITAL ADVISORS CORPORATE FINANCE ADVISORY FOR LEADERS AND INNOVATORS For enquiries, please contact: MOBIUS STRIP CAPITAL ADVISORS, 1/44, MALHAR, NEAR LILAVATI HOSPITAL, 1/44  MALHAR  NEAR LILAVATI HOSPITAL BANDRA RECLAMATION, BANDRA(W), MUMBAI 400 050   INDIA T: +91 22 6514 4513 F: +91 22 2642 0288 email : Indranil Deb    Jonathan  D’Souza +91 98336 27280     +91  99301 94384 APRIL 19,2009