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Helping exceptional people fulfill their unique ideas
Delta Financial Solutions |
| DFS- Our Company |
Delta
Financial Solution “DFS”, was founded by a group of investment bankers
in early 2009, acting as a pioneer of the new generation of investment
banking, valuation advisory, buy side analytics, sell side analytics
characterized by industry-specific, real-time, judgment-dependent
services that support core functions of our clients. Delta Financial Solutions is the investment advisory arm for Delta Holdings, catering to the growth and development for the SME sector in Egypt. DFS provide a full range of financial services, aiming to serve SME’s on different broad levels; business plans development/restructuring, equity/debt raising for expansions, and preparing necessary sales documents on different transactions. |
| SME’s- Our Market |
Small and Medium
Enterprises (SMEs) in Egypt, as per Law No. 141 of 2004, are defined as
any company or sole proprietorship practicing an economic
activity—whether productive, service rendering or commercial—with a
paid-in capital ranging from LE50k–LE1mn and employees not exceeding
50. Medium-sized entities are defined as those with paid-in capital of
LE1mn–LE5mn and up to 100 employees. In Egypt, about 99% of businesses in the SME sector are in the non-agricultural private sector, accounting for 80% of total value added activities in the Egyptian economy. Moreover, SMEs employ about 75% of the non-agricultural private sector labor force and 67% of the overall private sector workforce. With its increasing contribution to the country’s macroeconomic development, SMEs are now being considered as the growth engine of the Egyptian economy. Micro, small, and medium enterprises contribute around 80% of total value added and attract 47% of total investments in Egypt. The Egyptian government has been increasing its focus on the SME sector to achieve its political and economic goals by creating a more attractive business environment and to tackle unemployment, inflation, increase foreign direct investment, and accelerate GDP growth. With the help of a microfinance program, the Egyptian government aims to help micro and small businesses create 600,000 new jobs over six years, from 2005 to 2011. Medium-sized enterprises are expected to create 900,000 jobs during the same six years. Start-ups are likely to invest more than LE60bn. |
| Entrepreneurs- Our Clients |
Business
incubators do not serve any and all companies. Entrepreneurs who wish
to enter a business incubation program must apply for admission.
Acceptance criteria should be met, but in general only those with
feasible business ideas and a workable business plan are admitted. The amount of time a company spends in an incubation program can vary widely depending on a number of factors, including the type of business and the entrepreneur's level of business expertise. Life science and other firms with long research and development cycles require more time in an incubation program than manufacturing or service companies that can immediately produce and bring a product or service to market. “Successful completion of a business incubation program increases the likelihood that a start-up company will stay in business for the long term.” |
| Investment Assessment- Our Approach |
The
investment advisory process involves many phases. Getting the
financing/partnership options, and executing the research and analysis
is part of the first phase. The second phase comprises preparation of
pitching presentations, and highlighting the SME as an attractive
investment option to prospective financing entities. Skilled
negotiations on the terms and conditions of the Letter of Intent (LoI)
are carried out by an experienced and influential team at DFS. A detailed pitch book, analyzing various facets of the business, follows up. The plan also includes company and industry research, and evaluation of growth prospects and project attractiveness. This is followed by the signing of the contract and raising equity finance from investors. |
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Private Equity-
Our Role
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Ability to restructure companies both financially and operationally. Providing long-term financing to match company needs; private equity can provide a number of capable managers and companies with the required capital resources and financial structuring capabilities to enhance their competitive advantage. Bringing a broader perspective to the table to complement successful managers and entrepreneurs. Providing management with international exposure, and developing entrepreneurial potential and ensuring best corporate governance practices. Supporting the institutionalization of businesses and identifying key areas of development in terms of managerial skills and other human capital requirements. Value creation: the ability to recognize and act on opportunities for horizontal and vertical integration through mergers and acquisitions, and creating synergies by acquiring new companies that will complement the target. Having the ability to view businesses in a global perspective; private equity has business intelligence and knowledge of local, regional, and international industry trends. Identification of exit opportunities, thus creating superior returns via trade sales, IPOs, and other non-traditional routes. |