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Market analysis and forecasting |
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Decision support systems • Market reports • Special project analyses |
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Investment and risk management |
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Credit evaluation • Investment evaluation • Risk management services |
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Finance |
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• Fund raising |
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The
Challenge: Improving Financial Performance In a cyclical industry like shipping the time to invest or go long is when earnings and asset values are depressed. Given the uncertainty as to when markets may recover, funds are hard to attract at the low points in the cycle. Attracting funds at the right time requires sophisticated management and credibility. Funding The maritime industry needs to improve its ability to attract funding from the institutional investor community. Predictable quality earnings are a must. The relevant earnings concept of the maritime industry combines traditional operating earnings and capital gains from trading assets. Financial performance thus requires effective balance sheet management. Credibility The maritime industry is no different from other industries. Corporate track record, management, strategy and capital structure are evaluated to estimate the risk/return, value and liquidity potential of an investment. However, the shipping industry has been less focused on quantifying and communicating the risk/return implications of alternative strategies to the professional investor community. The private and under-researched nature of the maritime industry add up to potential for substantial returns. The historic relationship between timing and return on investment in the dry bulk segments suggests that the potential of proper execution is substantial. The Marsoft Contribution Marsoft’s mission is to assist our clients achieve the best market, asset, contract and balance sheet mix to meet specific risk/return targets. We provide continuous quantitative and qualitative evaluation of strategic opportunities and recommendations on how to repackage and restructure balance sheets to minimize default risk and the cost of additional debt and equity funding. We communicate risk/return characteristics to investors. Marsoft’s services provide a platform for continuous value maximization and minimization of funding costs. Corporate Valuation For mutually beneficial equity transactions to happen, the terms have to meet both the risk-return requirements of the institutional investor and the corporate value perception of the existing shareholders. The traditional historic earnings and balance sheet approach of institutional analysts have prevented such transactions from happening except at the top of the market. Marsoft has developed forward looking models to perform risk-return analysis that explicitly account for the market cycle. Unique Contribution Marsoft is uniquely qualified to translate the fundamentals of world trade and shipping markets into corporate strategy supportable by the financial community. We bridge the gap between disciplined quantitative analysis of the business environment and decision-making in the shipping industry. Furthermore we deliver reliable financial analysis to bridge the gap between the shipping community and the institutional investor community. |
