Raising debt finance to leverage shareholder returns
When available, taking on a suitable level of debt is often the most efficient way to fund a business. The raising of bank debt can also often be an integral part of a management buy out or acquisition. However, the legacy of the financial crisis has made this sort of borrowing a far more challenging task.
For a company to successfully raise bank debt it needs to have a compelling business proposition and to be able to present this correctly to a range of lenders. This should include an understanding of a sensible level of debt for the business, a detailed forecast of the future cash flows and a demonstration of how the company will sweat its assets to drive value.
An experienced professional advisor, such as ourselves, will not only facilitate an introduction to a range of lenders. They will also negotiate the best price for the deal in terms of both margin and arrangement fees and will ensure any security package is appropriate.
Our other corporate finance services
We can help managements understand the potential exits available to them and have worked with some of our clients over a number of years to ensure they have the best chance of a successful exit.
We are highly experienced in advising our clients on all aspects of an MBO. This includes advising on more challenging deals, such as an MBI or where a business is not on the market but where a management team feel they should have an equity interest of their own.
Throughout an acquisition, we are able to advise on transitional arrangements and always ensure the acquiring business is not exposed to unacceptable levels of risk.
It is critical that companies raise the right sort of finance, at the right moment in their development. We offer our clients a highly professional approach, enabling them to avoid the many potential pitfalls of a process. This includes the ability to introduce the opportunity to a wide base of appropriate investors, helping owners select the right long-term partner and negotiating suitable terms for the transaction.
The valuation of companies is at the core of our corporate finance offering. This real world experience enables us to offer comprehensive valuation reports for businesses of all shapes and sizes.