In recent years, financial authorities in Mexico have sought to facilitate access for companies to the public securities market. Today it is a fact that large and medium companies are able to access capital and debt in this market thereby obtaining not only resources at better prices and terms, but also institutionalization and image.
According to the Mexican Stock Exchange (BMV), stock financing allows companies to carry on their investment projects, which turns into improvement and expansion as well as into the ability to make the most out of a series of benefits that increase their business potential. A company can be financed through the issuance of debt or capital in the Mexican Stock Exchange.
Companies issuing their stock to the investing public not only obtain the benefits of financing, they also get responsibilities and obligations before the stock market and its participants.
Traditionally, the collocation of debt through Obligations has been one of the most successful instruments, together with commercial papers, which formed the basis of this segment. The problem with papers was their very short terms or, in any case, medium, for meeting Obligations. Today these are only issued by Banking Financial Groups to cover short and mid-term necessities.
In 2000, a new debt instrument appears, namely the stock certificate, which, unlike the obligation, has greater benefits within its structure, but a different condition: it requires assets or rights available on time.
Also known as “securitizations”, these are stock issuances based on a structured procedure in which similar assets are pooled into an issuer trust, which in turn, issues debt among the large investment public (national or foreign), into an organized stock market (Stock Exchange). Mortgages, accounts receivable, services, productive projects, infrastructure that generates goodwill, etc. For the public sector, its assets or income as taxes, rights, roads and toll bridges can also be structured and issued.
In a nutshell: this is a very stock-market product and less complex than a capital issue, since it is issued by a trust specifically created for that purpose. Therefore, it is not a direct debt with a low cost, a term according to the assets in question, and with clear and safe compliance conditions for the investor; it is public, with a regulatory framework so that it has a greater acceptance, qualified by two risk rating agencies with at least investment grade.
In Capital & Finance we have the knowledge and experience needed not only to guide you to your best option in the stock market, but to accompany you throughout the process, working with your company “from within”.
Obtaining additional capital for companies is a challenge that we are passionate about, since it involves not only understanding and assessing the true assets of a business, but also visualizing its potential, together with stockholders and possible investors. We believe that there are many possibilities in the current economic environment for those entrepreneurs and investors who wish to expand their growth and profitability horizons. Our function is to help both parties get the best in accordance with the objectives specifically pursuit.
Even though the use of Private Equity is something well understood and widely used in developed countries, which have more stable and diverse funding, in Mexico it is still an unexploited alternative, and although it has grown at an accelerated pace and its participation is increasing importantly, its use is not common and there are many uninformed opinions regarding its function and operability.
Private Equity is a group of investment partners that, generally, acquire stake in private companies in order to participate in their profits and thus deliver returns to their participants.
Invested companies obtain several benefits, such as:
PRIVATE OR PUBLIC EQUITY
As a consequence, the companies go from family or small companies to solid companies competing more efficiently even in global markets.
Generally, Private Equity funds seek to invest resources in private companies with high growth potential and they support these with capital and advice that strengthen their competitive advantages in financial, operational, and institutional terms in order to generate faster growths and benefits than that which the company would generate on its own.
One of our main services is to accompany and advise you in the search process of a private equity partner, from the search to the signature, through the corresponding financial analysis, interviews, due diligence, etc.
