Streamlined structured finance workflow for bulge bracket banks, ensuring thorough financial analysis, proposal formulation, legal documentation, and client support.
1
Identify the Financial Need
2
Compile Information from Prospective Client
3
Collect Financial Statements
4
Analyze the Financial Statements
5
Formulate Financing Proposal
6
Approval: Financing Proposal
7
Present Financing Proposal to the Client
8
Negotiate Terms with the Client
9
Prepare Legal Documents for the Transaction
10
Obtain necessary legal reviews and approvals
11
Approval: Legal Reviews
12
Finalize and sign the legal documents
13
Coordinate Transaction Closing
14
Monitor Performance of the Transaction
15
Manage Any Post-closing Adjustments
16
Prepare all necessary regulatory reporting
17
Maintain ongoing communication with the client
18
Discuss issues that may arise after closing
19
Approval: Issues After Closing Resolution
Identify the Financial Need
This task involves identifying the financial need of the client. It is important to understand their specific requirements and the reasons behind seeking financing. The ultimate goal is to determine the most suitable financing solution to meet their needs. Are there any specific challenges or concerns that need to be addressed in order to identify the financial need? Are there any industry or market trends that should be taken into consideration?
1
Debt financing
2
Equity financing
3
Mezzanine financing
4
Structured financing
5
Others
Compile Information from Prospective Client
This task involves collecting all the necessary information from the prospective client to understand their financial situation and requirements. This may include details on their business operations, assets, liabilities, cash flow, and any existing financing arrangements. The goal is to gather comprehensive information to inform the analysis and formulation of a financing proposal. What are the key pieces of information needed from the client? Are there any challenges or barriers to gathering this information?
1
Financial statements
2
Business plan
3
Tax returns
4
Loan agreements
5
Others
Collect Financial Statements
This task involves collecting the financial statements of the prospective client. Financial statements provide insights into the client's financial health, performance, and ability to repay the financing. The statements may include balance sheets, income statements, cash flow statements, and supporting schedules. The goal is to obtain accurate and up-to-date financial information for analysis. Are there any specific challenges or considerations when collecting financial statements? Are there any document formatting or organization requirements?
1
Balance Sheet
2
Income Statement
3
Cash Flow Statement
4
Supporting Schedules
Analyze the Financial Statements
This task involves analyzing the collected financial statements of the prospective client. The analysis aims to evaluate their financial performance, stability, and creditworthiness. It helps in assessing their ability to meet the proposed financing obligations. The goal is to make an informed decision regarding the feasibility of providing the financing. What key financial ratios or benchmarks should be used in the analysis? Are there any specific tools or techniques recommended for analysis?
1
Profitability ratios
2
Liquidity ratios
3
Solvency ratios
4
Efficiency ratios
5
Others
1
Excel spreadsheets
2
Financial analysis software
3
Risk assessment models
4
Industry benchmarks
5
Others
Formulate Financing Proposal
This task involves formulating a financing proposal based on the analysis of the client's financial situation and needs. The proposal outlines the recommended financing structure, terms, and conditions. It should highlight the benefits, risks, and repayment plans. The goal is to present a comprehensive and attractive proposal to the client. What key elements should be included in the financing proposal? Are there any specific legal or regulatory requirements to consider?
1
Debt financing
2
Equity financing
3
Mezzanine financing
4
Structured financing
5
Others
Approval: Financing Proposal
Will be submitted for approval:
Identify the Financial Need
Will be submitted
Compile Information from Prospective Client
Will be submitted
Collect Financial Statements
Will be submitted
Analyze the Financial Statements
Will be submitted
Formulate Financing Proposal
Will be submitted
Present Financing Proposal to the Client
This task involves presenting the financing proposal to the client. The presentation should be clear, concise, and persuasive. It should highlight the key benefits, risks, and terms of the proposed financing. The goal is to secure the client's agreement and proceed with the next steps. Are there any specific presentation materials or techniques to use? Are there any potential concerns or objections that need to be addressed during the presentation?
1
PowerPoint presentation
2
Financial models
3
Brochures
4
Supporting documents
5
Others
1
Lack of collateral
2
High interest rate
3
Lengthy repayment period
4
Complex terms
5
Others
Negotiate Terms with the Client
This task involves negotiating the terms and conditions of the financing with the client. The negotiation aims to reach a mutually beneficial agreement that meets the needs of both parties. It may involve discussions on interest rates, repayment schedules, collateral, and covenants. The goal is to finalize the terms of the financing. What are the key negotiation points to consider? How should potential challenges or disagreements be addressed?
1
Collaborative
2
Competitive
3
Problem-solving
4
Compromise
5
Others
Prepare Legal Documents for the Transaction
This task involves preparing the necessary legal documents for the financing transaction. The documents may include loan agreements, security agreements, promissory notes, and other relevant contracts. The goal is to ensure that all legal requirements are met and the financing is properly documented. What are the key legal documents required for the transaction? Are there any specific legal considerations or requirements to keep in mind?
1
Loan agreement
2
Security agreement
3
Promissory note
4
Guarantee agreement
5
Others
Obtain necessary legal reviews and approvals
This task involves obtaining the necessary legal reviews and approvals for the financing transaction. Legal reviews ensure that the proposed transaction complies with applicable laws, regulations, and internal policies. Approvals may be required from internal legal departments, external legal counsel, and regulatory authorities. The goal is to ensure the legality and enforceability of the financing arrangement. What are the key legal reviews and approvals required? Are there any specific challenges or time constraints to consider?
1
Internal legal department review
2
External legal counsel review
3
Regulatory authority approval
4
Board of directors approval
5
Others
Approval: Legal Reviews
Will be submitted for approval:
Prepare Legal Documents for the Transaction
Will be submitted
Obtain necessary legal reviews and approvals
Will be submitted
Finalize and sign the legal documents
This task involves finalizing and signing the legal documents for the financing transaction. It is important to ensure that all parties involved have reviewed and approved the documents. The goal is to establish a legally binding agreement that reflects the negotiated terms and conditions. Are there any specific signing protocols or requirements? How should potential discrepancies or changes be addressed during the finalization process?
1
Loan agreement
2
Security agreement
3
Promissory note
4
Guarantee agreement
5
Others
Coordinate Transaction Closing
This task involves coordinating the closing of the financing transaction. It requires collaboration with various parties, such as legal teams, external advisors, and the client. The goal is to ensure that all necessary steps and documents are completed before the closing date. What are the key tasks and milestones to coordinate? Are there any specific challenges or potential delays to address?
1
Legal document execution
2
Funding arrangement
3
Security perfection
4
Client's funds transfer
5
Others
Monitor Performance of the Transaction
This task involves monitoring the performance of the financing transaction after the closing. It requires regular review of financial reports, compliance with covenants, and communication with the client. The goal is to ensure that the client's financial health and payment obligations are monitored throughout the term of the financing. What key performance indicators or metrics should be monitored? How should potential issues or non-compliance be addressed?
1
Debt service coverage ratio
2
Loan-to-value ratio
3
Working capital ratio
4
Profitability margin
5
Others
1
Financial reports analysis
2
Client meetings
3
Site visits
4
Third-party audits
5
Others
Manage Any Post-closing Adjustments
This task involves managing any post-closing adjustments or modifications to the financing arrangement. Adjustments may be necessary due to changes in the client's business, financial condition, or external factors. It requires assessing the impact of the adjustments and negotiating the terms with the client. The goal is to ensure that the financing remains appropriate and viable for the client's evolving needs. What types of post-closing adjustments may arise? How should potential disputes or disagreements be resolved?
1
Negotiation
2
Mediation
3
Arbitration
4
Litigation
5
Others
Prepare all necessary regulatory reporting
This task involves preparing all necessary regulatory reports related to the financing transaction. Regulatory reporting ensures compliance with applicable laws, regulations, and reporting requirements. The reports may include financial disclosures, transaction details, and other relevant information. The goal is to fulfill regulatory obligations and maintain transparency. What are the key regulatory reports required? Are there any specific formatting or submission requirements?
1
Financial disclosures
2
Transaction details
3
Compliance reports
4
Others
Maintain ongoing communication with the client
This task involves maintaining ongoing communication with the client throughout the term of the financing. Regular communication helps in understanding the client's evolving needs, addressing concerns, and building a strong relationship. The goal is to provide support and guidance to the client while ensuring the success of the financing arrangement. How often should communication be initiated? What channels or mediums are preferred for communication?
1
Weekly
2
Bi-weekly
3
Monthly
4
Quarterly
5
Others
1
Email
2
Phone calls
3
In-person meetings
4
Video conferences
5
Others
Discuss issues that may arise after closing
This task involves discussing any issues or concerns that may arise after the closing of the financing transaction. It requires promptly addressing any potential challenges or disputes to ensure the smooth operation of the financing. The goal is to maintain open communication and resolve any issues in a timely manner. What are the common issues that may occur after closing? How should potential disputes or disagreements be resolved?