CORPORATE ADVISORY
Managing Financial Exposures Is Integral to Business Planning
In a global business environment, movements in exchange rates, interest rates and commodity prices affect cash flows, profitability, capital structure and the ability to plan and make business decisions over time.
Our view is that financial risk management does not begin by predicting market direction or selecting an instrument. It begins by understanding the company's underlying economic exposures and how they interact.
HOLZ assists companies in developing financial risk-management policies and evaluating foreign-exchange and derivatives strategies, with solutions aligned to the business model, liquidity requirements and commercial objectives.
CORPORATE EXPOSURE
Where Market Movements Meet Business Operations
01
Importers & International Trade
Exchange-rate movements affect the cost of goods sold, product pricing, margins and working-capital requirements. Assessing these exposures helps companies plan foreign-currency commitments and payments with a clearer understanding of the risks and available alternatives.
02
Exporters & Foreign-Currency Revenues
Currency mismatches between revenues and expenses create exposures that affect profitability and cash-flow visibility. Analysing exposures and forecasts enables consideration of a hedging policy aligned with the business model and the degree of certainty required.
03
Technology Companies & Global Operations
Companies holding foreign-currency balances while meeting operating and payroll costs in shekels need to consider the relationship between cash management, liquidity needs, operating runway and currency exposures.
OUR WORKING FRAMEWORK
Putting the Approach into Practice
01
Mapping Capital & Exposures
Reviewing the company's assets, liabilities and cash flows, including currency exposures, expected payment and receipt dates, and liquidity requirements. The mapping helps identify material exposures and assess their potential impact on cash flow and profitability under different market scenarios.
02
Developing a Risk-Management Policy
Defining target exposure levels, hedging horizons and the degree of certainty the company seeks, in line with its operations and business objectives. The aim is to establish a consistent decision-making framework rather than react to each market movement in isolation.
03
Evaluating Solutions & Supporting Implementation
Assessing financial alternatives, including forwards, options and collar structures, alongside natural or partial hedges, according to the nature of the underlying exposure. Our work includes comparing costs, protection levels and flexibility, and, where appropriate, professional coordination with a specialist trading desk and executing counterparties, together with an ongoing review of how well the solutions meet the company's needs.
FROM CORPORATE TO PRIVATE CAPITAL
Where Business Capital Meets Private Wealth
For business owners, corporate capital and private wealth are not always separate considerations.
Surplus corporate liquidity, concentrated holdings, founder shares, options and liquidity events can influence the overall capital structure and decisions made outside the operating business.
Alongside financial advisory work for the company, HOLZ can assess the points of intersection with its owners' private wealth, taking a broader view of investment policy, liquidity, risk and asset allocation.