The recently set-up MTI Corporate Finance Unit is a regional initiative to help companies planning to go public, by offering a multi-disciplinary turnkey solution that covers Corporate Governance, Strategic Risk Management, Financial Compliances, Statutory Approvals, Listing Facilitation, Share Issue Management and Post-Listing Compliances, the company said.
"With the Sri Lankan economy poised to take off and the stock market making record gains, we expect more private companies to go public. MTI Consulting, with extensive international and local experience is well placed to help these companies through MTI Corporate Finance," said Kapila Liyanage, Manager of MTI Corporate Finance in the statement. Based on a recent study carried out by MTI Corporate Finance, some of the strategic corporate finance challenges are:
4Capital Structures have not kept pace with rapid business development and as a result the current Capital Structure (in volume terms) is grossly inadequate to fund the business, thus stifling business growth. In some cases, working capital (at much higher cost) is playing the role of 'seed' capital
4Business growth curtailed due to inadequate capitalization of the business. Businesses that have inherent potential for profitable growth (therefore the attractiveness for funding), but unable to convince the sources of funding.
4 Poor management of Debtors (Sales Controls), Stocks (Sales Forecasting) and /or Sourcing (Supply Chain Management) leading to either inadequate or idle working capital. Not optimizing the inherent value (potential) of Debtors and Creditors by using arange of WC tools available or ones that can co-developed with financial service providers.
4Consequent to several international corporate frauds (of different sorts), many countries tightening up the laws and codes of conduct for corporates. Financial Governance is a critical part of such directives. Apart from the enforced laws / codes, businesses are realizing the needs for self enforced financial risk management.