From industrial strategy to capital structure.

Capital Readiness is the strategic assessment that connects an industrial plan with its funding requirement, the sustainability of its sources and the company's preparedness. It starts with what needs to be financed, when it must happen and the cash the business can generate—not with an available financial product.

INDUSTRIAL STRATEGY

1. 01

   STRATEGIC FUNDING NEED

   Establish what the business needs to finance: growth, working capital, capex, acquisitions, international expansion or refinancing. The industrial project determines uses, timing and priorities. The amount available in the market is not necessarily the amount the company actually needs.

2. 02

   FINANCIAL & CAPITAL ASSESSMENT

   Assess economic and financial performance, balance-sheet structure, net financial position, existing debt and cash generation. Working capital, capex, sources and uses establish the starting point, including resources already committed and cash that cannot be freely deployed.

3. 03

   DEBT CAPACITY & BANKABILITY

   Debt capacity is the financial burden a business can sustainably support; bankability concerns how a financing counterparty may assess it. The analysis considers normalised EBITDA, cash generation, net financial position, working capital, capex, existing debt, maturities and debt-service capacity. Capitalisation, reporting, governance, concentrations, guarantees and the credibility of the plan complete the assessment. No leverage multiple is universally appropriate.

4. 04

   CAPITAL STRUCTURE

   Compare internal resources, debt, equity, private capital, supported finance where relevant, asset monetisation and industrial partners, including combinations of sources. No instrument is inherently preferable: duration, risk, flexibility and ownership implications must fit the strategy and the company's financial capacity.

5. 05

   READINESS & FUNDING PREPARATION

   Address the gaps that make the business difficult to understand or its plan difficult to believe. Reporting, the business plan, projections, net financial position, working-capital visibility, governance and information quality should support a verifiable assessment of sustainability. A teaser or Information Memorandum, where appropriate, communicates that preparation; it cannot replace it.

6. 06

   CAPITAL OPTIONS & MARKET APPROACH

   Only after the preceding assessments should the company consider appropriate options and counterparties. The conclusion may be further preparation, a combination of sources or a decision not to add debt. M&P's role remains strategic assessment and decision support, not fundraising execution.