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Added Value in Investment Banking Services
Added Value> Added Value in Investment Banking Services

Raising capital is not an easy task without the right contacts and without knowledge of capital markets and their investors. A chief executive should centre his efforts on his project or company and not get too distracted by the search for capital, which without experience is difficult to find time efficiently and with advantageous terms. Mencey works as a financial  intermediary, linking projects, chief executives and entrepreneurs with private and institutional investors on international capital markets.

Mencey is an actor on a major segment of the financial system, channelling recurring transactions in various sectors to find and negotiate the best market conditions. Our team studies numerous projects each year. Our rigorous selection process is a guarantee of quality for the investor with whom we can build trust based on a flow of high quality deals.

Mencey’s influence is not limited to obtaining better terms but also increases the probability of success of the transaction by packaging the deal so that it has the best chances of getting the green light from investor risk and investment committees.

Often the terms are as important or more important than the pricing of the deal. Mencey provides advice for the structuring of shareholder agreements, stock option plans, patent and brand issues, planning, valuation, structuring of strategic alliances, etc.

The chief executive must be able to lean on competent and experienced advisors for legal and accounting issues. These advisors must have particular experience in very specialized areas like mergers and acquisitions, venture capital or capital markets, often on an international basis.

A good financial advisor knows alternative ways to structure an agreement or transaction and knows the requirements of potential investors, thus widening the range of possibilities for the identification of investors or lenders and increasing the chances of convincing them. The advisor helps to level the playing field for chief executives that deal with professional investors familiar with the sophisticated negotiation techniques of the market.

In the negotiation process the advisor acts as a mediator and can influence talks by acting alone in separate or parallel meetings, seeking to iron out differences and to find solutions or leading investors to fight for the deal with competing bids. 

The presence of an advisor in negotiations is also a plus in that it indicates commitment to the deal; it adds credibility to the business plan, increases the chances of success and guarantees a high level of professionalism and efficiency in the process.

How Mencey is remunerated?

In the field of investment banking services, from the moment a project has been selected and approved, Mencey will begin its role as advisor. We have a standard remuneration system based on fixed and variable fees:

  • Fixed fees allow us to partially cover the costs incurred in the process of valuation, assessment of feasibility, strategic analysis, financial analysis, preparing the business plan, preparing the term sheet or placement document, identifying and selecting investors, etc.
  • Variable fees are typically a success fee defined as a percentage of capital raised. In certain cases fees can be paid in the shape of shares in the client’s company, indicating Mencey’s commitment to the project.