The Challenge of
Financing of Small and Medium-size Entities
A key challenge of the German mid-tier sector represents the assurance of short, medium and Long-term financing of the Business activities. In the wake of the global financial crisis of 2007 thru 2010 with the turmoil on the global financial market the relevance of financing especially of companies in the mid-tier sector has significantly increased. In particular the restrictive credit policy of Banks has caused severe problems for companies. The restrictivity of the credit policy in Germany is based on a key feature of the German mid-tier sector: a historically low rate of equity, which typically results in a low credit rating.
In Addition the financing of companies in the mid-tier sector that are in restructuring or turn around situations is extremly problematic, as assuring a continued financing is vital for the continued success and mere existence of the company.
Recent developments in corporate finance can offer a solution for mid-tier companies and a starting Point for a reallignment of the company financing structure. Newly developed financing solutions are currently being used by private investors, banks as well as public subsidies and grants.
The alternative, newly developed financing instruments can supplement the common debt financing by means of bank loans and thereby contribute to an increase in the equity basis of companies.
» General Consulting Services in the field of SME Financing
- Financial Due Diligence
- Tax Optimized Financing Structure
- Preparation and Assistance in Discussions with Banks and Investors
- Intercompany Comparison and Benchmarking
- Alignement and Implementation of Internal Controlling
- Consulting and Assistance in IPO / IBO
- Structuring of Mezzanine Finance, hereby considering Accounting and Tax Implications
- Assistance and Structuring of Private Equity-Participations
- Assistance in the Application Process for Subsidies and Grants
- Aktive Consulting in relation to Venture Capital-Participations
- Optimising Balance Sheet and Liquidity by means of Finance Instruments
- Analysis and Advise in relation to the financing, Leasing / Factoring
» SME Bonds/ Bonds-Issuance
- Conception of Bonds
- Analysis of status of issuance and Marketability
- Assistance in discussions with Banks and Investors
- Assistance in the Rating-Process
- Selection and Coordination of the appropriate Market Place / Stock Exchange
- Marketing Concept
- Discourse with Investors and Analysts
- Monitoring of Covenants
- Processing of Repayment and Follow-up Funding
» SME Financing and Optimisation of Balance Sheet
- Accounting Policy
- Credit Mediation
- Rating from the Point of view of Banks and DATEV-Rating
- Optimisation of Balance Sheet and Liquidity due to Financing Instruments
- Optimisation of Balance Sheet by means of Leasing, Factoring
- Optimisation of Balance Sheet by means of Company Pension
Our proven Consulting Approach
Based on our long-standing experience we offer a proven Consulting Approach in relation to the issue of Financing of Small- and Medium-Sized Companies. We follow an integrated approach, thereby considerung both the initial financing requirements as well as implications in relation to Accounting and Taxation and integrate these in a comprehensive Optimization Approach.
Our Experts from the fields of Financing, Taxation and Capital Market Law we offer our Clients a comprehensive and active consulting. Our current Network is based on numerous realized projects and consists of reputable (Issuing-)Banks, Restructuring- and Turn Around Conusltants as well as specialised Lawyers.
Focus of our Consulting Services is also the implementation of Due Diligence processes. We hereby Focus on Financial and Tax Due Diligence.
We assist our clients by basing our Consulting Services on a risk-oriented approach. This approach underlies our ongoing Monitoring of the current Finance and Liquidity Status, the optimization of the financing as well as Refinancing Measures.