We carry out projects related to financing a company’s development or financing investment projects. The investment is usually financed through a capital increase, a mezzanine loan or a bank debt, or a combination of these instruments.
Our services are complex. We take responsibility for the whole process. We supervise and coordinate all auxiliary activities related to legal and tax services.
The process of choosing a financial investor is similar to the process of selling shares in a company:
- The portfolio of investors includes private equity funds, mezzanine funds and large private investors
- We are particularly focused on verifying the concept of development strategy and preparing an information memorandum (a de facto business development plan or a description of an investment project)
We help in rescuing or recovering liquidity, repairing the ‘equity & liabilities’ side of the balance sheet and improving the long-term financing structure of companies.
This is most often the result of obtaining additional financing to rebuild working capital, to refinance existing debt and strengthen the company’s capital. This is often associated with the sale of part of the business, concentration on the core business of the company, securing of new investors for the company and refinancing of bank debt.
Our services are complex. We help in negotiations with partners, bondholders, banks and other stakeholders.
We carry out buyout transactions by groups of managers. We help prepare the project from the point of view of their needs and those of the capital and debt providers.
We attract investors and banks that finance the transaction. Leveraged Buy Out / Management Buy Out consist of purchasing of the business by external investors, or the board of directors of the company, using borrowed money. For this reason, the amount of capital that the acquirer must engage is low. It usually ranges from 10 – 25% of the value of the whole transaction. The debt is “transferred” to the LBO-financed company and repaid within a few (five to six) years, through profit or, more specifically, the free cash flow that the company will generate. In a nutshell, that’s how to describe a leveraged buyout operation.
The ideal company that can carry out LBO redemption should have the following features:
- Operating in a stabilized sector where high capital expenditure is not necessary
- The market position of the company should be well established so that it is able to generate a high and predictable level of cash flows necessary to service its debt
- A stable asset base, especially fixed assets. These assets can both serve as collateral and can be repaid and thus reduce debt
- Potential for growth or at least maintenance of results
- Low debt