Banking and Capital Markets

The recent economic crisis has highlighted the importance of risk management, as well as public regulation of the private sector and cost control programs. Cambridge Consulting provides high quality services, aimed at mitigating the risks of trading in global banking and capital markets. Our multinational investment banking teams are managed by partners with extensive experience around the world, maintaining relationships with a variety of significant market players, regulation experts and industry heads. We gear our deliverables to the needs and desires of each individual client, as well as focusing on core, vital issues, such as:

  • Growth: An essential component of worldwide operations. As in recent years there have been relatively few large scale mergers and acquisitions, one of the most significant challenges to capital markets arises from hedge funds, bringing a significant level of instability to this market, hindering growth.
  • Performance: Advice towards stakeholders in capital markets has frequently focused on expanding growth within the sector, as opposed to minimizing costs, managing individuals and improving efficiency (although recent events have revealed the necessity of such measures).
  • Governance: Internal regulation, solid governance and consistent reporting are vital to any sector where there is significant risk. Again, recent events have revealed the necessity of such measures, and the consequences of ignoring them.

The recent collapse in the stock market has led many Private Equity houses to more closely examine their current portfolios. It is significantly more difficult to offer investors the returns on investment that were possible a few years ago. Private Equity houses will have to show more restraint regarding their portfolio management, and be more careful about selling off their assets (as approximately at least one third of Private Equity houses selling off assets reported that the value of their assets had dropped significantly).For most of the first decade of the 21st century, Private Equity houses have overcome such obstacles via initial public offerings or trade sales. However, due to the 2008 economic collapse, these options are much more difficult to implement, leaving the third possibility of secondary transactions (that is, selling assets to another Private Equity house). In the future, Private Equity houses may very well make increasing use of strategic alliances and joint ventures.

Acquisitions are increasingly being decided, within an auction process. However, the level of competition, inherent in any auction, will limit the data potential auctioneers will be able to utilize, thus hindering their abilities to make the best decision possible. This will significantly impact the ability of Private Equity Houses to analyze the challenges to be faced, after the completion of the acquisition. Among the most significant challenges that companies have to deal with, after the completion of an acquisition, include the level of complexity involved in merging two different entities, significantly different organizational cultures between the entities and merging the firms’ computer and data processing systems.

The auditing and professional service giant, KPMG, details seven factors that businesses should focus on, with regards to newly integrated firms:

  • Individuals·
  • Risk Management and Governance·
  • Analytical Decision Making·
  • Increasing Revenues·
  • Lowering Costs·
  • Increasing Liquidity·
  • Integration and Separation Issues.

Increasingly complex risks along with increased governmental examination and regulation has made the navigation of capital markets more difficult. Such measures are believed to be increasing costs dramatically, while at the same time offering little in terms of benefits. It is via a company’s organizational abilities, and its ability to process, and transmit, accurate information in an efficient manner, that value is added. This can be done, in part, by utilizing technology which can improve the efficiency and accuracy of data, thus allowing the firm to make more sensible decisions, obtain a more accurate assessment of risk and minimize management and safeguarding costs.

Telecommunications operators are facing the challenges of growth, convergence, business transformation, technological change and increasing regulation.
Telecommunications operators choose Ernst & Young because they value our industry-based approach to addressing their assurance, tax, transaction and advisory needs. They know that they’ve much to gain from our clear understanding of the opportunities, complexities and commercial realities of the telecommunications industry — wherever in the world they’re operating. What gives us this understanding is our Global Telecommunications Center. Operating from Paris, Africa, Beijing, Delhi and San Antonio, the Center brings together people and ideas from across the world, to help you address the challenges of today — and tomorrow. You benefit from our insights on key trends and emerging issues — whether relating to next generation services, infrastructure sharing, outsourcing, revenue assurance, operational efficiency, regulations, future growth markets or mergers and acquisitions. So you can react to trends in a way that improves the financial performance of your business.
Staying competitive requires navigating risk It takes a lot of hard work and follow up to achieve a competitive advantage in the marketplace, as we help our clients to get. Our Financial Services at Cambridge Consulting rated as an elite service, as we offer a wide range including market, credit, and operational risks.