Corporate Operations

* Financing

For a company, becoming listed on Bucharest Stock Exchange (BSE), although being a lengthy process, can raise serious capital. It is very important that this kind of financing is cheaper than a bank credit.

Beside buying and selling shares and bonds, which are well known by the majority of population, the stock market can bring other services to companies, even to unlisted ones. Financing through the stock market is simple: the company offers for sale its shares or bonds for raising the necessary capital.

One of the main advantages of a company that decides to sell shares or bonds through the market is self-sufficiency. In other words, the company itself sets the terms and conditions for borrowing money, which must be agreed by potential investors. So the company sets the price and number of shares it wants to sell.  Otherwise, if the company wants to borrow money from a bank, the financial institution sets the terms regarding the maximum amount that can be borrowed and also sets the credit cost.

Financing Steps

The first step that a company must make, in this case, is assuming the obligations of a listed company. In other words, become a public company, with certain obligations regarding its economic transparency. The next step is preparing the public offering, prime condition for listing, which can also be done for listed companies longing for additional financing. After completing this step, the shares are being put for sale and, in maximum two months from the completion of the transaction, the listing will take place.

Capital Increase

Already listed companies can finance themselves from investors by increasing their capital. This method, used more and more often on the Romanian stock market, can be put into practice either by capitalizing the profit from previous years, which implies issuing free shares, either by raising new capital by issuing shares that can be bought at a price usually lower than the market price.

* Consultancy

Mergers and Acquisitions

  • detailed analysis of companies’ situation;
  • identifying potential buyers/sellers;
  • developing the merger prospectus;
  • identifying the best method to set the acquisition price and the payment of mergers and acquisitions;
  • methods of takeover;
  • preventive measures against hostile takeovers;
  • identifying what possibilities the shareholders have in order to retreat from a company and to receive the fair value of their stocks.

Listing and Un-listing on the Bucharest Stock Exchange

  • turning a limited company (Ltd.) into a stock company;
  • public offering:
  • financial evaluation of the company;
  • evaluating the public offering price and optimal issuing volume; drawing in potential investors;
  • elaborating the stock issuing prospectus and promoting activities;
  • upgrading from an alternative trading system to the BVB system.
  • the conditions needed for the un-listing procedure.

Business planning, consulting and feasibility studies

  • elaborating the business plan or feasibility study;
  • consulting regarding the elaboration of business plans.