Paul Stafford
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Paul Stafford's Page

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Paul Stafford is now a user of M&A Links
Sep 12, 2012

Profile Information

First Name
Paul
Last Name
Stafford
Job Title
Director
Company
Currency Risk Management
Type of Business
Other
If Type of Business is "Other", please describe
FX risk management
Transaction Size "Sweet Spot" (USD)
Small Cap (Less than $10 mm), Lower Middle-Market ($10 mm - $100 mm), Middle-Market ($100 mm - $500 mm)
City
Huson
State
MT
Country
Missoula
About Me (Company description, Biography, Services I provide):
Currency Risk Management, LLC is a consulting company focused on managing foreign exchange risks. We structure optimum currency hedges to largely eliminate the effects of exchange rates on your international transactions.

Managing FX risk allows you to focus on your core transaction instead of worrying about exchange rates. In addition, reducing earnings volatility creates more stable and predictable cash flows, reduces cost of capital and enhances the value of a company.
Network with Me (Types of transactions I seek, Professionals I like to be referred):
Cross-border M&A:
The assets of the acquired firm are denominated in a foreign currency, affecting leverage and important deal metrics (debt coverage ratios, internal rate of return). The valuation of those assets is exposed to FX risk, as is the company valuation.

Post-transaction, FX risk exists in the discounted value of the future cash flows translated from a foreign currency into the functional currency of the parent.

Paul Stafford's Blog

Mitigating FX risk in cross-border M&A

Posted on September 12, 2012 at 4:16pm 0 Comments

I'd be interested to see how others are managing this risk.

In a cross-border leveraged buyout the assets of the acquired firm are denominated in a foreign currency, affecting leverage and important deal metrics (debt coverage ratios, internal rate of return.) The valuation of those assets is exposed to FX risk, as is the company valuation. Post-close, FX risk exists in the discounted value of the future cash flows translated from a…

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