EMERGING MARKETS SPECIALISTS
Helping clients enhance portfolios by holding a candle to guide you paths
Developing countries governments and businesses face many challenges and we services in helping clients adapt strategies in overcoming challenges.
EMERGING MARKETS
According to Vincent Santeng's insights on emerging economies, he emphasises the importance of respecting the cultural and tribal variations inherent in African markets. He highlights the disheartening nature of foreign entrants who seek to exploit the generosity of Africans without regard for these values. Santeng suggests that such attempts are bound to fail in the long run, as the interconnected systems in Africa are deeply rooted in these cultural and tribal norms. He cautions that any short-term gains made by disregarding these values will ultimately result in reputational damage and adverse consequences for investors.
Finding Inspiration in Every Turn
Emerging economies are often defined differently by various experts, but they generally share the common trait of rapid economic growth. While investing in these economies presents higher risks, many investors are attracted by the potential for high returns compared to advanced economies. The faster economic growth in emerging markets offers opportunities for diversification and the realization of investment objectives, outweighing the inherent risks involved. To maximize profitability, it is crucial to have a deep understanding of the specific emerging markets within the broader emerging economy.
According to Vincent Santeng, several characteristics are necessary for a country to be classified as an emerging economy:
-
Political and Government Stability: A stable political environment and government structure are vital factors for economic development.
-
Improving Social Amenities and Infrastructure: The presence of developing social amenities and infrastructure indicates progress within the emerging economy.
-
Advancement in Education and IT Solutions: Accessible education and IT solutions for the majority of the population contribute to human capital development and technological advancement.
-
Increasing Liquidity and Reduced Market Barriers: The local markets within the emerging economy should exhibit improved liquidity and fewer barriers to transactions, even though market efficiency and standards may still be relatively low.
-
Stable and Developing Markets: The presence of stable and developing markets allows willing and qualified participants to engage in transactions freely, resembling the conditions found in advanced countries.
By fulfilling these criteria, a country can be classified as an emerging economy and provide opportunities for growth and investment.
Approach to Client Investment
PMCT Accountants and Consultants are well-equipped to assist you in accomplishing several important tasks, including:
-
Facilitating Discussion and Exploring Options: We will engage in thorough discussions with you to understand your proposal and identify viable options. By considering various factors and requirements, we can help determine the most suitable course of action.
-
Conducting Research and Due Diligence: Our team will conduct comprehensive research to identify potential preferred options. We will evaluate each option carefully and advise you on the allocation of further resources based on their suitability and alignment with your objectives.
-
Screening and Assessing Target Entities: We will perform a detailed screening and assessment of the identified target entities. This process ensures that the chosen entity is suitable for your objectives and aligns well with the implementation of your proposal.
-
Presenting Proposal and Valuation: With a well-prepared proposal, including valuation methodologies and acceptable considerations, we will present it to the target entity. Our aim is to effectively communicate the value and benefits of your investment proposition.
PMCT Accountants and Consultants are dedicated to guiding you through these crucial steps, ensuring that you have the necessary support and expertise to make informed decisions and achieve your desired outcomes.
THE MARKETS FOR INVESTMENT
Our goal is to assist investors in developing effective strategies and approaches for negotiating with target entities:
​
-
Strategy and Negotiation Support: We provide guidance and support in formulating strategies for negotiating with the target entity. Our expertise enables us to help you navigate the negotiation process and achieve favorable outcomes.
-
Financial Analysis and Financing Options: We conduct a thorough review of the target entity's financial strength and assess various sources of financing for your investment proposal. This analysis helps in determining the most suitable financing options for your specific needs.
-
Deal Structuring and Conclusion: We advise on the finalizing strategy, assisting in structuring the deal to ensure its alignment with your objectives. Our experts work with you throughout the conclusion phase, providing insights and recommendations to facilitate a successful outcome.
-
Integration Planning and Due Diligence: We support the development of an integration plan, which includes conducting due diligence on various aspects such as personnel, IT software integration strategies, training requirements, activity recording, project structure, and the establishment of a program management office.
-
Post-Implementation Review: We conduct a comprehensive review following the implementation of the deal, assessing the synergy between the acquired entity and your existing business. This review helps identify opportunities for improvement and ensures the successful integration of the acquired entity.
At PMCT Accountants and Consultants, we are dedicated to assisting investors throughout the entire investment process, providing valuable insights, expertise, and support to help you achieve your goals.
Private Markets
Mostly inefficient and unregulated with potential for return enhancement due to inherent forms of risks for consideration. It is somehow considered to be better than public markets due to the illiquidity risk premium in assets favouring investors. Private markets offer better diversification and protection against inflation. Examples include private equity and venture capital.
Public Markets
Mostly regulated by governments as it serves as the key approach to raising money. Investors can offload their position with ease. Public markets do have many intermediaries. Public markets are compelled to list securities and the process requires cleansing hence it is deemed efficient. Example of the public market is stock exchanges, and brokers, and investment banks.
EMERGING MARKET TYPES & APPROACH
Finding Inspiration in Every Turn
Investors intending to gain stakehold interest through acquisition, merging, franchising, liquidating/part sale, or investing in another entity must have appropriate strategy to enhance target entity's competitive position or even ensure survival in the marketplace. We are willing and ready to assist any would be investor realise aspirations of ownership and investment objectives.
Country Measures
Governments and governmental agencies would have pillars of established rules and regulations to ensure illegitimate acts are not supported. It is important to understand these rules and regulations to appreciate and anticipate the performance of the respective financial instrument.
Currency & Economic Trend
The strength of a currency and readily available multi-currency conversion systems is a must for investment consideration. Though the past is a good guide for most financial investment decisions, we place much emphasis on possible future economic trends.
Political & Risk Profile
Be informed about political risk effects and stability of government decisions that could affect the values of invested assets. Avoiding the opportunity to invest based on the unproven perception of political risk or financial instrument profile not based on facts could lead to investors forgoing viable opportunities to achieve investment objectives.
Instrument of Investment
Every instrument has an inherent associated risk, and these characteristics must not be ignored when determining the equilibrium price for entry. With experience and deep-seated exposure to investment types and markets, we aim to analyse and interpret spikes exhibited by many markets and financial instruments.
