Chesterfield Associate Inc (CAI) Enterprise Development and Financial Services Group provides technical and management expertise to support development of a micro, small and medium scale private sector enterprises and sustainable private sector financial institutions. We provide assistance in program and project strategy formulation and design, project management and implementation, and monitoring and evaluation to clients including: the U.S. Agency for International Development (USAID); the World Bank Group (WB and IFC); the Inter American Development Bank (IDB); the African, and Asian Development Banks (ADB); the European Bank for Reconstruction and Development (EBRD); national governments; nongovernmental organizations and business associations; commercial banks; and private corporations.
The services of the Enterprise Development and Financial Services Group focus on strengthening the enabling environment for small and medium enterprises, promoting the development of strong financial institutions and private sector support organizations, and providing firms diagnostic services and technical assistance and training.
In addition to our own staff we maintain relationships with a large number of independent technical and subject matter practitioners and consultants to assist us on a project by project basis. Specific areas of staff expertise include:
CAI's Enterprise Development and Financial Service Group have developed an extensive network of local and international partners with whom we can subcontract or joint ventures to further extend our resources. Our professional staff ensures the delivery of the appropriate expertise for each assignment or project, administrative backstopping, and quality control.
The Enterprise Development and Financial Service Group have developed practical, field tested training materials to help practitioners tailor solutions to immediate problems. Some examples of solutions and technical guides developed include:
CAI's work in privatization ranges from macroeconomic policy reform required for coherent private sector promotion to valuation and market readiness activities for specific companies and enterprises. Our approach to privatization transactions requires an integrated and management development, trade and investment promotions, and creation of sales and marketing strategy. Thus, in addition to a core group of investment, privatization, and finance specialist, professional from diverse financial, technical, and development disciplines contribute to CAI's investment and privatization projects.
Privatization is an intricate process encompassing a range of options to achieve economic and political goals. At CAI, we define privatization broadly as the transfer of state owned enterprise (SOEs) from the public sector to the private sector. The transfer may result in different levels of private ownership, or it may result in a charge in management, e.g. leases and management contract.
We retain a large full time staff to provide direct technical contributions and management support. Our staffs have experience in the following areas:
Investment and trade promotion have become increasingly important issues for developing countries. Faced with balance of payments crises, recurring trade deficits, dwindling foreign exchange reserves, and rising unemployment, national governments have begun to accept the limitations of inward-oriented development strategies, and are adopting policies that encourage foreign and local direct investment, especially in the export sector.
We offer a comprehensive and transaction-oriented strategy for foreign investment promotion. Our philosophy is that the agenda of an investment authority should be driven by a comprehensive investment promotion strategy built on the needs of the private sector. Our approach is to combine the reform of investment institutions and their governing laws and regulations with the implementation of targeted promotion programs and the delivery of transaction-related services that seek to link specific investors with the investment needs of a given country.
At the policy level, we assist governments in developing a privatization strategy and help institutions agree on goals. We work with governments to evaluate the benefits and costs of privatization and to balance widespread private ownership against sound corporate governance. We support government efforts to build the privatization ministries and agencies needed to implement action plans. We also advise on the development of a legal framework for the transfer of enterprises.
We assist the privatization agencies to identify the enterprises to be sold, prepare sequencing plans, and determine the optimum time frame for sale of each enterpriser. We asses the health of the enterprise while identifying the need for restructuring. We prepare valuations of enterprises and develop a divestiture strategy for each enterprise.
We provide enterprise restructuring services either for the entire or for liquidating or spinning off parts of the enterprise.
We assist in the preparation of bidding documents for public tenders or auctions, information memoranda for negotiated sales, and prospectuses for public flotations. For mass privatization, we assist in developing systems for the distributions and auction of vouchers. When acting for buyers, we perform due diligence and strategic analysis.
We assist in the financial and organizational structuring of new companies and help them meet accounting requirements. In addition, we provide tax and investment advice to privatized enterprises.
Privatization is usually just one of the components, such as deregulation. We advise on improving the environment for private sector development through the replacement of direct government control with the appropriate regulatory framework. In addition, we help governments institute the best approach to regulation of monopolies.
Our staff economist and privatization specialist are supported be a sophisticated computerized recruitment database and experienced administrative support, extending our ability to provide top-quality personnel to meet requests for specialized assistance. Staff ensures delivery of the best available talent for each assignment, along with careful coordination, follow-up, and quality control.
Each year thousands of the unwary business owners settle for a price that is based on some formula never realizing that their companies have a clear and definable value, and that their business may be worth more to the right buyer. At CAI we have developed a process that consistently sells more value for our client's business, frequently for more money than even the business owner envisioned. CAI consulting is a group of professionals who are merger and acquisition specialist, financial advisors, business sales specialist, and deal makers.
We consider a SELLER'S point of view an essential value of business. We guide them how to position their business before they begin to sell. A seller has to make its financial structure and growth potential look as attractive as possible to buyers. A seller has to see the sale from the buyer's eyes. In essence, a seller has to determine the true value of their business or they'll never be able to know if an offer is high or low. The fact is that most business owners are unaware of the true value of their business.
We also consider a BUYER'S point of view an essential value of business. We guide them how to buy a lucrative business. Most important, the buyer is buying the future, the business' growth potential, consistent cash flow and dividend paying capacity. In other words, the buyer is looking for the most important ROI (return on investment).
The entire process at CAI begins with Quality Evaluations which is made up of several components:
Often recasting financial statements substantially increases the apparent earnings of business, which makes them more attractive to potential buyers. Recasting is an acceptable general accounting practice. After recasting a company's financial record, CAI uses the record to build a projection of the business growth potential a proforma.
Packaging comes next. We will suggest changes that will make the business's appearance as attractive as possible to potential buyers. We consistently check and double check our figures because the information and formulas applied to our clients have to be absolutely correct and accurate. If they're not, they won't be credible to the buyer.
The final step in the evaluation process is deciding on an appropriate deal structure. A deal structure includes future personal needs as well as specific rewards. An optimum deal structure is much more than a cash transaction. Once the evaluations completed, the preliminaries are over, its time to actually sell our clients' business. That's where CAI deal maker comes into the picture.
From the evaluation report we prepare a confidential detailed review. It's a detailed guide for qualified buyers, who will have at their fingertips objective information on the value of our clients' company and documentation of its future value. It's essential that all for the information in this report be accurate. Otherwise, an owner may risk legal entanglement. The business review should be entirely confidential, in fact your company name will not appear on the document. This is to protect our clients' from competitors and premature rumors of sale. There are three main steps in selling any business:
For instance, in prospecting one must first determine the largest number of qualified buyers who would be interested in buying a business. Secondly, knowing the proper contact person and decision maker of the company is essential. It is also very important to know a company's buying history, how to they put deals together and how they act after the deal is over. In dealing with buyers from other countries, knowing the key contact person can save us endless time and effort.
After a group of potential buyers has been prospected, the negotiation process begins. Negotiating is the process whereby you learn the needs of the buyers and any objections to the seller. We serve an important role as a mediator. We work with both sides to make sure all information and needs are understood and properly transmitted.
Even after the negotiations are over, the sale is still not assured. Due diligence is a very big part of closing the deal. It is a process whereby the buyer brings in his team of experts; financial, legal and technical to substantiate the representations and information provided to them. If material discrepancies are found, it could put the entire deal in jeopardy.
The most important things we do as deal makers, is to completely understand the seller's objectives and help the buyer complete a deal that will satisfy your objectives.
To define CAI Consulting in a single word would be "professional". Those who do all things with a great deal of enthusiasm and skill which carries an implication of commitment. That is our business — and it is a positive joy to make it happen for the entrepreneur.
As an established consultant to management with an extensive private sector client base, CAI uses its specialized experience to successfully undertake demanding projects in private sector development.
There is renewed emphasis around the world on ways to stimulate private sector development and a growing recognition of the importance of a vibrant private sector for sustained economic development. The costs and inefficiencies that resulted from state approaches to economic development are being addressed by government after government. Policy reform in many countries reflects these changing sentiments.
CAI offers its experience to developing countries and international lending agencies in the following areas:
CAI provides assistance in privatization efforts with objectives including promotion of efficiency and promotion of a wider share of ownership.
We provide technical assistance to small and medium size enterprises in developing countries by analyzing the economic and institutional constraints to private enterprises development and formulating strategies to address these constraints.
Our services to financial institutions are concerned with the effective use of new technologies, the management of risk, and the development of information management and decision systems, marketing strategies, and business development strategies.
We have the capability and experience to conduct market research, including estimation of export market potential, quantification of investment required to meet demand, and analysis of options to stimulate investment.
Our services include analyzing a country's climate for investment, developing strategic plans for investment promotions, designing specific export and investment expansion strategies, and identifying target industries and sectors. We also have provided assistance in the design and establishment of institutions to promote investment and services to strengthen the internal operations of such institutions.
Chesterfield Associate Inc has built a reputation for effective,
comprehensive oversight and management of complex projects. Management
is important for all projects; however, large projects require a
range of skills and a depth of analysis that we have long provided
for clients worldwide. We ensure that planning and management are
comprehensive, ongoing efforts involving all participation.
Project planning and management are especially critical to the
success of projects that are complex, longterm, multisectoral and
multinational- as is typical for large development projects. We
have built the skills to plan, oversee, organize, and provide financial
management for such large projects. We are also sensitive to local
conditions that can affect performance, such as culture, politics,
government requirements, and competition. We can devise tactical
means of dealing with problems such as shortages of finance and
lack of infrastructure or appropriate technologies.
Effective project management is a multi-dimensional effort that goes far beyond the technical skill areas involved- a fact often overlooked by technical experts. Technical competence must be complemented by financial and interpersonal skills.
We put together international teams with skills in planning, financial control, performance measurement, contractual management, communication, evaluation, crisis management, teamwork, and conflict resolution. We have found that an ability to manage change is critical, as is an ability to overcome constraints, complemented by cultural sensitivity. The right project manager combines all of these skills with the ability to communicate well at all levels.
Planning in advance and managing in process are critical and mutually complementary skills. Our approach to our assignment stresses the classic management motto: No surprises. We plan thoroughly, monitor constantly and utilize feedback. We stress teamwork to ensure that everyone shares the common project objective.
In planning a project, we establish a work plan that divides the work into clearly identified segments. The division is based on an analysis of critical activities. These segments are at a level of detail that allows for problems to be identified and resolved early. We specify the expectations and responsibilities for each segment. We have extensive experience suing automated project scheduling and monitoring systems, which allow us to relate each work step to the project budget. At this stage, too, we establish and document relevant policies to guide the rest of the project, and we establish a means of change control.
Our project monitoring & evaluation calls for regular, standardized reporting of time and expense according to the work breakdown structure. We install effective financial recording and reporting processes to ensure that our managers and clients are always current with the state of the project. We assess external factors that affect the project. When variances to schedule or budget are identified, we use our change control process to account for their effects. Further, we involve our clients at each stage, encouraging their input and keeping them up to date on progress. We also foster teamwork and communication, so that all team members understand the project's overall goals and how their tasks interrelate.
The last important ingredient is feedback. We constantly seek feedback on our products and processes from clients and team members. Feedback also includes our quality assurance mechanism, where all work products are reviewed and critiqued by experienced managers before they are delivered.