The cross-border JV model is not for everyone. Thus, Tzar chooses each of its clients carefully and undertakes a rigorous due diligence process to determine whether their global business expansion project has merit, can be successfully implemented, and is cost-effective in terms of overall budget, logistics and timing. Tzar’s cross-border JV project implementation strategy includes the following key steps and guiding principles:
- Gain complete understanding of the client’s core business and growth strategy
- Analyze the investment/expansion opportunity the client seeks to undertake
- Confirm and establish a clear and focused cross-border JV opportunity/strategy
- Research and understand the target market and all revenue opportunities
- Advise on overall capital requirements and appropriate structure (equity/debt)
- Access broad and varied network of highly motivated corporate capital
- Identify and select best-in-class investment bankers, funds, alternative investors
- Assess direct and internal investment options, as well as 3rd party capital
- Identify prospective JV partners and manage communications between the client, JV partner, regulatory/legal agencies, customers, investors, etc.
- Negotiate the best investment terms possible on behalf of the client
- Help prepare all necessary investment offering documents, JV/M&A contracts, etc.
- Organize client “road shows” to open up new markets, partners, etc.
- Help prepare materials and other necessary documents/forms for “road show”
- Access Tzar’s network of potential strategic business partners in order to maximize growth/expansion opportunities for the client
Unlike direct corporate or institutional capital from traditional investment banking sources which focuses on short-term results and aggressive ROI, and often shifts command and control away from the company to the investor, Tzar’s approach blends together private capital and foreign corporate capital that can potentially fund future products/projects. This approach also ensures that the client company is always in a leadership and controlling position. Similarly, a reliance on traditional advisors for capital placement (who are generally only interested in front-loading fees and commissions), would result in no long-term or synergistic benefits as would any capital raise spearheaded by Tzar.
