Financial Restructuring & Financing

In order to cope with crisis situations, additional financial resources and measures to strengthen equity capital are required on a regular basis. We actively support processes of restructuring financing, refinancing expiring loans, as well as accounting restructuring measures within the corporation and outside of it.

Financial Requirements Planning – Determination of Financing Requirements

The following questions take priority in the determination of existing financing needs:

  • What strategy can the company use to sufficiently differentiate itself and secure sustainable earnings?
  • What structures and investments are required for this?
  • What restructuring program is derived from this?

By using integrated planning tools, we ensure transparency regarding financing requirements and develop tailor-made coverage concepts.

Documentation of Financing Projects

After the internal clarification of the financing targets, it is necessary to document the business case and the desired financing requirements in a manner appropriate to the target groups. In the case of financing in the crisis stage of a company, a going concern forecast or a restructuring report is usually the basis for the financing decision. But even in the event of a non-crisis, it is advisable to prepare financing discussions with comprehensive company documentation. We know the requirements profile of capital providers from numerous financing transactions that we have accompanied and support our clients in the creation of fact books, information memoranda, business plans and other documents with a focus on the goals.

Achieving the Ability to Restructure through Measures to Strengthen Equity

In order to achieve a company’s ability to restructure, measures to eliminate the risk of over-indebtedness or to improve the equity situation are often required in addition to performance-related tasks. This may include subordination agreements, waivers of claims or debt-equity swaps. The involvement of our tax and legal experts ensures a holistic selection and evaluation.

Financing Measures – Measures to Add New Financial Resources

In addition to measures aimed purely at improving the balance sheet, it is regularly necessary to add fresh money to strengthen liquidity as part of restructuring projects.

On the one hand, this can take the form of equity from existing or new shareholders as equity financing. On the other hand, debt-capital-oriented measures, such as bridging and restructuring loans, can be considered. Guarantees and subsidies from the public sector may be additional potential options for financing. Furthermore, other special financing instruments such as leasing, factoring, mezzanine capital, to name but a few, can be examined.

A typical feature of restructuring-related financing concepts is that several of these elements are combined. Likewise, there is often a coordinated approach by the financing partners and syndicate financing structures. We take into account the growing complexity with the number of participants through comprehensive project management. 

FAS AG Assistance in the Financing Process

Not only in restructuring situations are financing processes usually projects that go well beyond the day-to-day business of the management in terms of complexity and resource commitment, but at the same time have a considerable influence on the future viability of the unit to be financed. We guide our clients through all phases of the financing process. We accompany the preparation, option selection and financing concept, approach of financing partners, negotiation phase as well as closure, and help to free up management capacities through our implementation-oriented consulting approach. 

If you are interested or have any questions, please contact us.

 Dr. Rainer Doll Partner