Business Process Re-engineering

Achieve success through radical redesign :

Each situation needs different professional expertise depending on which we offer end to end customized services so as to help you identify and grab opportunities, select the most effective restructuring plan and achieve your strategic goals.

Our Offerings:

REORGANISATION OF CAPITAL

The company may/have to go for capital reduction when it has

  • substantial accumulated losses and part of the capital is permanently eroded
  • surplus cash which it wants to distribute to its shareholders
  • no need to raise balance calls on partly paid shares

We advise client to arrive at the right size, timing and tax optimum structure for shareholders after in depth analyse of the balance sheet along with the future projections and business plan and other long term objectives. Our team will execute the selected option either as pure reduction (Section 66 of the Companies Act, 2013) or even by way of a scheme of arrangement as may be appropriate

We advise buy back to cash rich companies where management wants to

  • Give exit option to some shareholders
  • Distribute surplus cash not required by business
  • Increase promoters holding
  • Support share value
  • Prevent takeover bid

Section 68, 69 and 70 of the Companies Act 2013 and Rule 17 of Companies (Share Capital and Debentures) Rules, 2014 deals with buyback. Here, we advise them on the appropriate size, timing, procedure and compliances.

We advise this option when the company wants to

  • Raise additional capital by equity shares without diluting control of the existing ordinary shares
  • Satisfy the need of retail investors who do not bother much about voting rights, but are more concern about dividend and returns.

Note: Only a private company can issue non-voting equity shares. (intepretation of various sections of Companies Act, 2013)

We understand the strategic objectives of the management and based on this we advise them on size, timing, compliances and process of issue and once agreed we help execute the agreed issue.

Similar to non-voting equity shares in some respects, we advise this option when

  • Voting rights are not to be diluted
  • For funding large projects, as fewer voting rights in an issue do not trigger open offer
  • Hostile takeover is to be prevented
  • There are strategic investors who are looking for a reasonably big investment but not the control in the company
  • Higher dividends over voting rights are preferred

We understand the strategic objectives of the management and based on this we advise them on size, timing and process of issue and once agreed we help execute the agreed issue.

Human resources are the most important asset for any corporate. We advise this option to

  • Attract, retain, motivate and incentivize employees
  • Give them a sense of ownership and to encourage them to participate actively in the management of the company

We understand the importance of human resources in the company and based on this we advise them on size, timing, conditions, valuation and process of issue and once agreed we help execute the agreed issue.

We suggest this for reasons similar to ESOP but for employees in exchange for providing know how/rights or other value addition.

We understand the importance of human resources in the company and based on this we advise them on size, timing, valuation and process of issue and once agreed we help execute the agreed issue.

We suggest this option when the company wants to reward its employees for financial growth. This is similar to ESPP but here employees do not have to purchase anything and the incentive is in the form of cash.

We understand the strategic objectives of the management and based on this we advise them on size, timing, conditions and process and once agreed we help execute the agreed issue of rights.

We recommend share split when

  • There are indications that the company’s share price levels are too high in comparison to its peers.
  • Shares are to be made more affordable and liquid for small investors enhancing its shareholder base without changing its underlying value.

We understand the strategic objectives of the management and advise them on size, timing, ratio, process and probable effect of the split and once agreed we help them execute the agreed share split.

We advise this option

  • Make investing in shares more attractive to a broader range of institutional and professional investors who may have a mandate to only invest in shares above a certain price point.
  • Meet the minimum trading bid size to ensure its listing status on the stock exchange.
  • Reducing the volatility of the stock
  • Increasing the trading share price.

We explain to the management the pros and cons for this option and its probable effect. We understand the strategic objectives of the management and based on this we advise them on size, timing, ratio and process of consolidation and once agreed we help execute it.

We suggest convertible debentures when the company

  • Has long gestation period and
  • Has risky projects requiring small interest burden at the beginning and
  • Is unable to raise fund through Equity.
  • Wants to delay dilution of control in the company.

Here, we understand the business model of the company and future plans of the management and based on this we analyse the risk return profile and advise them on size, timing, conversion ratio, price and process of issue and once agreed we help execute it.

We advise to opt for preferential allotment when

  • It is not preferable or feasible for a company to issue securities to the public at large
  • It is too time consuming and expensive
  • Certain persons want to take a strategic stake in the company

We understand the financing needs of the company and the strategic objectives of the management and advise them on process and execution of the allotment.

OTHER

We help the management in identifying clearly their long term objectives by asking the right questions. Based on this, we address the issues, suggest the most suitable corporate structure and present the pros and cons of each option to the management. We then execute the conversion process in a cost effective manner.

Under the new Companies Act, 2013 there are large number of compliances and many complications, which are costly and time consuming. Therefore, we recommend Small enterprises to switch their Companies into Limited Liability Partnerships (LLP).

To avail these services please goto LLPDestination.

We do an extensive analysis of the debt portfolio involving various economic, legal, tax and accounting aspects to arrive at workable options complementing the future financial growth of the company. We also guide the company through different stages of a debt restructuring process, for eg. debt exchanges and tender offers

We not only help to restructure debt but have teams who can identify the risk areas beforehand. This helps companies to rethink its strategy and take pre-emptive and preventive measures as required.

Our competent and experienced team can help identify key business drivers and risk factors not only firm specific but also considering the economic factors affecting the entity to suggest various strategies to improve efficiency and profitability.

You can also read some Case Studies on Financial Re-Engineering here.

To discuss how our team can help your business achieve true results, please Contact us

OUR CLIENTS LOVE US
It has been our absolute pleasure to utilize the solutions of hu Consultancy and its fine team of professionals. We are indeed fortunate to have been introduced to hu and its team. We look forward to many years of our association with hu consultancy in the near and far future.
Managing Director, Weikfield foods Pvt. Ltd.
We are happy with the services rendered by hu Consultancy in connection with the ongoing assignment on KOEL demerger given to hu. We are happy to associate with hu Consultancy. We appreciate the Professional support given by you and the high degree of service orientation displayed by your team.
C.E.O, Kirloskar Oil Engines Ltd.
We are happy with the holistic and overall approach taken by hu Consultancy on our project in the most tax efficient manner.  The procedural aspect of our project, which involves various steps were all carried out in professional manner, with little inconvenience to ourselves. We look forward to a continuing association with hu in times to come.
Managing Director, Weikfield Products Corporation LLP