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Corporate financing, mergers & acquisitions

We support you as the entrepreneur or shareholder in company financing and also in the sale of a company. For both purposes it is essential to present the company to external parties in a conclusive manner. Depending on the situation and the addressee, certain causes and requirements need to be understood and followed. We will support you and your company with this.

Corporate Financing

In a crisis situation, the first contacts for corporate financing are the present financing partners, as it is considerably more difficult to find new partners. The (re-)establishment of trust and transparency is essential. We ensure this through accompanied communication and conclusive information on financing structures and financing costs. What is relevant is:

  • The presentation and analysis of your company; which usually includes
    • the depiction of the current economic situation
    • liquidity planning
    • the presentation of products, operational processes and the value chain
    • the execution of a SWOT analysis
  • The characterization of the current market and competitive situation with consideration of industry trends and industry drivers
  • The presentation of possible restructuring measures
  • The presentation of strategic measures, of the (re)orientation of your company and of future potential
  • The inclusion and evaluation of the collateral required for financing partners in the financing process
  • The creation of an integrated planning calculation depicting all processes and business transactions in your company

By observing and implementing these measures, we support you in creating trust and transparency for corporate financing and convince your finance partners with sound information, analyses and measures. Corporate financing in times of crisis requires early communication with existing and potential new financing partners as well as an on-going dialogue on the subject of financing. We will assist and advise you throughout the entire process.

As an entrepreneur or shareholder, of course we will also support you in restructuring the liabilities side (debt advisory).

Mergers & acquisitions

As with financing during a crisis, the sale of a company is hardly part of an entrepreneur's daily business. Therefore, seeking professional support and advice from experts such as Restrukturierungspartner is always a wise move. Depending on the initial situation, the nature of the sales process, the evaluation of companies and the potential buyers differ considerably.

When selling a profitable company to an interested party, whether for reasons of succession or to secure assets, there is sufficient time to prepare the sales process (also known as the M&A process) and to present the company by means of an Information Memorandum (IM). Restrukturierungpartner pay particular attention to the selection of potential investors, a highly confidential approach and the identification of future potential.

In a M&A process, it is important to deal with the issue at an early stage, because in a company sale with succession planning, the expectation of an investor may be that the entrepreneur will still be available for a transitional period of two years. Starting three years before the planned departure of the entrepreneur is advisable.

Investors often have different approaches and interests. In addition to the purchase price, strategic investors assess possible synergy effects, customer access, regional coverage and, of course, future potential. Financial investors often act on a stand-alone basis, i.e. financial aspects and potential play a decisive role for them, as the resale of the company is often planned.

However, the sale of a company during a crisis within the framework of a so-called distressed M&A procedure is carried out according to different rules. The shorter time frame usually has to be compensated by a faster approach and less extensive documents in order to enter into personal discussions with a few interested parties as quickly as possible, but with very detailed information. But also in a distressed M&A process our tasks involve identifying possible restructuring measures and determining positive effects, if necessary even initiating operative measures. Only then can we achieve an optimal purchase price for a company in crisis.

For strategic investors, in addition to the assessment criteria already mentioned, the availability of management capacities and restructuring experience are also important for the sale of the company. In addition, in distressed M&A procedures, financial investors specifically geared to crisis situations are contacted.

Company Valuation

A valuation of the company is carried out by us either separately for the selling entrepreneur, as a so-called fairness opinion for banks, trustees or insolvency administrators, or in the context of a mandate of sale of a company.

Two methods for company valuation have been established: The discounted cash flow method and the comparison with company valuations from completed transactions and listed companies. In crisis situations, the going concern values or the break-up value of the assets are also used as the lower limit.

Essential measures to increase the value of the company are planning the future, including potential, or, if sufficient advance planning is carried out, also increasing potential. This is achieved by optimizing the capital structure and implementing operative measures, among other things. As a consulting company, we also support your company in this respect.

Neither corporate financing during a crisis nor the sale of a company are everyday tasks. With our comprehensive expertise, we create added value, which in the end has a visibly positive impact on the company and its value. This is the standard we aspire to uphold.

 

Werner Warthorst
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Werner Warthorst

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