Debt advisory

Even in stormy times, we support you with risk-adequate capital procurement, for example to avert potential risk of over-indebtedness or insolvency. To this end, we draw up a transparent status of the current capital structure as quickly as possible, from which we derive the need for action and sustainable financial planning. We develop a realistic business case that shows the perspectives of the company as transparently as possible. Because only on such a comprehensible and convincing foundation can alternative financing solutions such as club deals (with existing banks) or the finding of new creditors succeed. We think in terms of alternatives and know to convince with our negotiating skills and our knowledge of the market. Contact us. Because we speak your language – and the language of your financiers.

Financial restructuring

In a restructuring process, three fundamental questions arise:

Firstly: Who has financed the company and in what way – is it a private or institutional investor, what instruments were used (loans, bonds or participations), and what is the structure of the collateral?

Secondly: How long can the company maintain its ability to service debt?

Thirdly: Does the company need fresh money or is a restructuring of the financing model sufficient?

The restructuring of a company requires experience and sensitivity. In general, we find that alternatives to traditional bank financing are becoming increasingly popular and are very much in demand. We focus equally on assessing the economic competitiveness of our clients as well as on increasing their financial performance. A restructuring of the financing model is therefore often accompanied by a restructuring of the ownership structure, which results in an M&A transaction.

Transaction management

(Partial) company acquisitions, but in particular the sale of companies, which have to be prepared and implemented under time pressure and with the involvement of various stakeholders due to a company crisis, are another one of our fields of competence. It is crucial here to achieve a valid determination of the company value as quickly as possible, to observe the legal framework conditions meticulously and to address a broad spectrum of potential buyers. The procedure of M&A transactions is more or less always the same, which is why we can provide a brief and concise theoretical description on the basis of the corresponding German Wikipedia article: “M&A transactions usually begin with the search for suitable targets (“Deal Search”). This is followed by the evaluation of potential targets (“Due Diligence”), followed by negotiations with the shareholders and/or the management of the target (“Deal Negotiation”), which are recorded in a term sheet. A letter of intent can confirm the intention of both parties to successfully complete the transaction. The drafting of contracts (“Deal Documentation”) is accompanied by law firms, auditors, management consultants or investment banks. Once the purchase has been settled, the investor's investment controlling (Deal Monitoring”) ensures permanent monitoring of the development of the target, which may be resold later (“Exit”).

If the M&A transaction (“Signing”) is concluded and all the conditions specified therein are fulfilled, the contracts are fulfilled by both parties within the framework of the “Closing”. Companies are often also sold under the auspices of investment banks as part of auction procedures (“Controlled Auction”). This is where only certain investors (bidders) are admitted as potential buyers. Separate and confidential negotiations are conducted with each bidder. Finally, the company is sold to the investor who, from the seller's point of view, offers the most favourable contract terms and the highest purchase price.” So much for theory. Here’s where you can find reality: j.nawrath@corporate-finance-management.de