In cases where our public or private sector clients need to raise additional cash for other capital investments, acquisitions, stock repurchases, expansions, general purposes or working capital, the best-value alternative may be to securitize existing revenue streams or assets. Securitization refers to a monetization of certain assets or businesses by "carving out" and pledging certain assets as collateral and/or a future stream of net revenue receipts to lenders or investors. One of the advantages for a securitization is that it can generate a significant amount of upfront cash without selling or reducing control of the core businesses or assets.
In some cases, borrowing against certain revenues streams, assets or receivables may be of greater value than selling businesses or assets. As an alternative to selling (privatizing) a public sector owned infrastructure asset such as a tollway, airport or power plant, the government owner may evaluate first whether a potentially higher amount of cash proceeds could be made available through securitization. DCS advisors can analyze a securitization option for our clients and ensure that under an M&A or privatization process, that the minimum reserve price is exceeded. To the extent that a securitization transaction is pursued, we assist the client in the most efficient execution of the transaction.
Securitization is also a financial tool used by many of our private sector clients involved in leasing businesses, including real estate owners (such as leased commercial, industrial and residential property portfolios) and equipment leasing companies (such as aircraft, railway rolling stock, containers and trucks & trailers).
DCS provides comprehensive transaction execution services for all securitization transactions, accessing our clients' relationship lenders, other lenders active in our clients' sectors, markets and regions as well as debt capital markets, in some cases. This will ensure that our clients attain the lowest borrowing cost and highest possible proceeds from any securitization transaction. Our complementary advisory services with respect to execution of commercial debt and debt capital markets financing transaction are described in greater detail within those respective pages.
DCS advisors are able to provide securitization advisory services on a stand-alone basis on behalf of our clients. In many cases, as securitization advisory services will be only one element of a larger project delivery program, DCS will also be providing other complementary transaction advisory services in relation to a particular transaction. Our preference is always to provide such comprehensive transaction advisory services and coordinate all elements of the transaction, including securitization services on behalf of our clients.
Under any securitization financing services mandate, DCS will draw from our vast global network of veteran industry expert advisor affiliates and our relationship consultants in order to assemble the most appropriate team to match the specific needs of the transaction at hand. This will always include leadership of DCS affiliate experts who possess decades of global transactional experience related to the specific sector and transaction type. In any leveraged financing services mandate, our preferred role is always to serve as the lead project/program manager. Within this role we are also able to assist in the selection and procurement (or subcontracting) and management of other advisors, including local and international legal and tax advisors or other specialized advisors, as the specific transaction may require.
Complementing our leveraged financing advisory services, DCS advisors offer the following complementary advisory services that may be applicable, dependent on the acquisition transaction situation.
DCS experts provide comprehensive leveraged acquisition finance advisory services in the following sectors that we specialize in. Please click on the below links to learn more about the sectors that we cover:
DCS experts provide acquisition finance advisory services to the following categories of clients:
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