Pytheas' Investment Banking Advisory works hand in hand with corporations, institutions and governments to provide the best solutions for each of our clients' needs. Our experts bring specific industry, regional and product expertise to each client, advancing Pytheas' industry leadership in devising and executing the most innovative, customized answers to the most challenging issues in the emerging market marketplace.
Each industry area within the organization works closely with product team members in Mergers & Acquisitions, Capital Raising, Corporate Finance, Equity Finance, and the industry divisions throughout Pytheas to provide the relevant market insight, product creativity, and execution expertise to clients.
Our Investment Banking Advisory extends across a diverse range of product areas, including initial public offerings; public and private equity and equity-linked financings; mergers, acquisitions and restructurings; defense advisory assignments; strategic partnerships; public and private debt placements; share repurchases; and hedging, swaps and derivative transactions.
While some financial institutions may be better capitalized than before the crisis (or any crisis), shareholder returns for bank stocks will always be under intense pressure as the result of the loss of proprietary trading revenue, increasing regulation, higher administrative costs to implement the additional regulation and the movement of many derivatives to exchanges. Moreover, banks are constantly divesting assets in an attempt to bolster capital and appease regulators.
Elevated stress in funding markets (a key threat especially to the Eurozone banks) combined with the need for the financial sector in general to deleverage (in Europe, not just in the peripheral economies but also Italy, UK and France) creates the need of the banking sector to recapitalize and seek external financial advice and capital. Restructuring (financial and organizational), consolidation and M&A will continue to see a surge and the markets need a solutions provider, such as Pytheas, which not only understands the market key components but possesses in-depth knowledge and ability to facilitate change efficiently.
All companies are affected by changes in the global banking system as new risk weights drive a wedge between investment grade and non-investment grade credits; Pytheas recommends that companies should actively consider capital market alternatives to bank capital wherever feasible.
Companies need to assess for instance the strategic implications of Europe entering negative growth territory for the next two years or more (with firms making worst-case contingency plans covering liquidity, access to funding, FX risk, supply chain pressure and strategic capital deployment).
As capital expenditures remain subdued – a result of market uncertainty – stronger companies should consider alternative uses for this excess liquidity, such as share buybacks.
Moreover, the potential to unlock value through financial restructuring is of utmost importance – streamlining business models by separating underperforming or non-core businesses through spin-offs, split-offs or divestitures.
Connecting people, ideas and capital, we aim to be our clients' first choice for achieving financial aspirations!