Appraisal services and cost consultations

Appraisal services and cost consultations support a comprehensive approach to the improvement of the business performance, capitalisation increase, and an improvement of the financial information development. We perform appraisal in accordance with the federal laws and international standards for all assets, including:

  • Shares and participatory interests
  • Intangible assets
  • Real estate and land titles (also to challenge the cadastral value)
  • Rights of demand, goods, works and services
  • Machines, equipment and vehicles

Cost consultations including services related to the determination of an asset market, investments and the fair value in accordance with the International Valuation Standards.

Legal and tax consultations

The tax consultation services rendered by the IFC Group of Companies are composed of a full range of services concerning legal and tax support and include the following:

  • Real estate sales and development
  • Corporate law
  • Mergers and acquisitions
  • Taxes and finances
  • Legal representation
  • Compliance (anticorruption and antitrust laws, labour laws, personal data laws, etc.)
  • Intellectual property

Support of the activities of foreign companies in Russia

Providing services to the non-residents running businesses in the Russian Federation is separate block of services offered by the IFC Group. The main advantage of these services for customers is a comprehensive approach to their legal support in Russia. They includes all issues a customer may face, from the choice of a business form for a foreign company in Russia to the full-scale outsourcing of support based on the “one-window” principle.

Financial and investment consultations and support of capital-raising transactions

Financial modelling is one of our key activities. When working on 95% of the projects, we will build a project (asset) economic model in the first place to: 

  • Forecast the customer’s financial standing
  • Forecast the implementation of various business development/project delivery strategies
  • Evaluate the various options for fundraising and valuations
  • Compare the appeal of different investment projects
  • Select a transaction structuring pattern
  • Evaluate the significance of risks

Most business decisions have economic consequences, and we believe that they should be digitised as early as possible in the planning stage and that a financial model must be a handy tool for any manager.

This business area offers the following services:

  • Development and expert evaluations of business plans, feasibility studies, investment memorandums, concepts, and other documents required for new business developments and the mobilisation of financing (including benefits from the government agencies)
  • Development of financial models with various levels of detail, as demanded by our end users
  • Development of long-term development programmes and concepts and other policies involving innovation and investment initiatives for the company’s development, as well as other regulations and policy documents for government and municipal enterprises (with the relevant participatory interest)
  • Funding attraction support
  • Development of main methods for investments and finance management, including the development of prioritisation models for investment projects, investment project efficiency assessment models, the main reporting formats, etc.

Management consultations

A range of services related to management consulting is demanded when a company becomes a low performer. Normally, this happens after an extensive growth period, a series of mergers and acquisitions, or due to internal conflicts between the subdivisions of the company.  This results in “organisational chaos” that is reflected in a long decision-making cycle, the lack of an approval system on key matters, collective irresponsibility, low motivation of employees, the “groundless” growth of fixed costs, etc.

The reasons are often very simple (e.g., all management functions are concentrated in the hands of one manager, “manual” decision-making, very large areas of responsibility, etc.) Usually, most of the tasks can be solved through the optimisation of the business processes, including:

  • Business diagnostics of the current situation and identification of the sources of the inefficiency
  • Development of potential options for the re-engineering and approval by the customer
  • Development and approval of an organisational development plan which may include:
    • Updates of the development strategy
    • Documentation of key processes
    • Optimisation of the organisational structure
    • Changes to the structure of the management reporting and the responsibility centres of the processes
    • Development of an incentives system, key performance indicators, and other measures aimed at improving the staff motivation
    • Development of strategic maps for each business area and a Balanced Scorecard
  • Development of the main set of documents and internal reporting formats
  • Educational workshops/strategic sessions with the customer employees (this is usually the most important stage)

We will allocate a project management implementation team as a separate business line. They will help to implement the necessary changes and strategic initiatives onsite at the customer’s company. These processes include:

  • Creation of a project office
  • Building a project reporting and management system and project KPIs
  • Development of regulations

Surveillance and engineering, supervision and technical controls

The main services offered by the Masterplan include:

  • Services related to the development of city documentation, including concepts, projects and area developments, as well as engineering and design documentation.
  • Technical audit services for real estate, including steel constructions and utilities.
  • The author’s supervision and construction control of all work types, to be fully in compliance with the design and cost estimates and the regulatory documentation.
  • Performance of the general designer and technical customer functions.
  • Independent expert evaluations of the source documentation and construction permits, capital cost budget, and the overall documentation development level.

Our Masterplan specialists have hands-on experience in dealing with the top architects and consultants in commercial real estate, which makes their proposed solutions “practical”: from a high yield of the useful space to the minimisation of the proposed costs in the operation stage of the designed facility.

Our specialisation

Transaction support

Any transaction, regardless of its subject, implies a set of work that includes the inspection of the asset quality and a valuation, transaction structuring, contract work, and other activities aimed at ensuring the most efficient transaction process with the minimum risks for the seller and the buyer.

The advantage offered by our Group is the possibility to have all necessary work done by one well-aligned team. This prevents any potential conflicts of interest and controversy between the recommendations of “conflicting” project consultants, which can often happen. 

This business line offers comprehensive transaction support, and the services include:

  • Due diligence before a transaction (legal, tax, financial and technology audits)
  • Consultations on the transaction asset value
  • Transaction structuring (providing a proposed further use of the asset, financing structures, existing restraints, etc.)
  • Document work in relation to the transaction and legal support during the negotiations, signing and closing of an agreement
  • Support during the integration of an acquired asset into the existing business

Restructuring of distressed and non-core assets

Why?
These services may be of interest to those companies that happen to have a large portfolio of assets which are not being used for their core business activities.

First, they may pertain to banks that own pledged collateral or that are consider acquiring the same. Ideally, it will be a profit-making business with operating commercial real estate etc., but usually the main pledged collateral is a facility where the construction is in progress and there is an unclear marketing concept, construction quality and constituent entities, all of which imply significant risks for their new owner. The priority for the new owner is due diligence and the valuation of a new asset.

Also, we should mention the large companies formed after a series of mergers and acquisitions, or as a result of the privatisation of government and municipal enterprises. Many of these companies own a huge set of non-core facilities, such as social support and auxiliary assets which are no longer used in the ongoing operations but that require significant monetary contributions (taxes, operations and overhauls). In this case, the service is about the review of the portfolio of non-core assets (often the company does not have information to correctly valuate their portfolio) and the development of a non-core asset management strategy: selling, leasing out, or using the assets in the core operations.

In some cases, it is enough to ensure more efficient use of the assets, such as by reducing the current operational costs or leasing the asset out. Sometimes however, we will recommend more aggressive methods ranging from selling an asset pool to forming a new business line. Each company will benefit from a unique strategy and tactics.

We have joined these activities together in a separate business line, as they involve our frequent challenges and require a comprehensive approach.

This business line offers the following services:

  • Preparation of the structure of a non-core asset register
  • Due diligence of assets (constituent documents, valuations, current usages, costs of ownership, existing defects, restrictions to the asset use, etc.)
  • Audits of property management processes, evaluations of the current economic efficiency of the property usage and risk management systems 
  • Asset clustering (if required), along with the development of a set of strategies for the potential asset usage, economic modelling and optimisation of the strategy
  • Development of a restructuring concept, taking into account the company’s main strategy and schedule 
  • Strategy implementation support (with as many in-house resources as possible)

Support of investment construction projects, including ppp projects

Why?
The implementation of our own investment construction project involves an analysis from at least four expert positions: legal, marketing, construction and financial. Based on due diligence, our customer must have an unbiased understanding of the project’s potential and the related risks, as well as an evaluation of the scope of the resources required for its implementation.

We offer our customers due diligence and a risk analysis for the investment project from various viewpoints, and will provide recommendations for the optimisation of a potential project. We can assess the probability of the successful approval of a project by the regulators and the issuance of all necessary permits. We will develop a project business plan, draft agreements and other documents required to source the financing and deliver the project.

We have extensive experience in the delivery of major infrastructure projects with public institutions and we understand the requirements the officials may have (from a legal form to the bid documentation). 
We offer the following services to support the implementation of investment construction projects:

  • Due diligence of the investment projects
  • Support of the land transactions
  • Analysis of the investment project risks
  • Engineering and construction controls, and the author’s supervision 
  • Engineering and optimisation of the project solutions
  • Financial and technical supervision/control over the investment project’s implementation
  • Project structuring
  • Development of a project concept, including the organisational & the legal and financial models
  • Development of bid documentation and draft agreements
  • Comprehensive support during bidding

Support of long-term projects

Why?
Most businessmen cannot solve all their challenge through just one consultation.

For example, a decision to launch a product/expansion is based not only on the development of a financial model and a business plan, but requires additional expert evaluations such as:

  • Land plot analysis/analysis of a proposed room (whether it can be built or rebuilt) and the main restraints
  • Analysis of the proposed costs/cost estimate for its optimisation
  • Development of a financial model to determine what will happen in various unfavourable scenarios 
  • Determination of a new business model, including the main responsibility centres, internal accounting principles and the performance indicators for the key managers
  • Building and testing of new business processes and the development of internal reporting formats

This list is not exhaustive. Some of this work can be done using own project resources, while other parts must be outsourced.

Our involvement in the process usually implies not only the performance of specific work tasks but a close interaction with the project initiators and their team:

  • Searches for dedicated experts, including the recruitment of external consultants
  • Linking the deliverables of various experts with those of the in-house specialists (usually, these are incompatible recommendations)
  • Planning a common list and process for the project work and the roadmap development
  • Adjustment of the original plan of implementation, if necessary (cases when a project is implemented as originally planned are rare)
  • Integration of the internal project management with the customer’s business processes

In this case, we function as external experts that are “off system” and can reconcile the conflicting parties to find a more well-balanced solution.