Independent debt and capital structure reviews

In the context of the needs and future growth plans of the underlying business, we review the appropriateness of an existing capital structure. We provide analysis and insights around sustainable cash earnings to firstly assess corresponding debt capacity. We also critically assess funding and working capital management, pricing of existing Senior package compared to market and financial and credit metrics. We make value-add recommendations for Board to consider and implement.

Refinancing and new debt arranging

Helping customers with refinancing their existing debt structure either with their incumbent lender or into a new structure including potential shareholder ‘cash outs’ where new lenders may place a higher LVR compared to the incumbent lender.  Whilst there we have a firm focus on competitive interest rate pricing, we also look to other finance package aspects to favor the borrower including the tenor of facilities, covenants and total available limits.  

Acquisition due diligence on a target investment

Analysis and field work interviews with management on reasonableness of financial projections of a target with particular focus on earnings, cash flow and working capital management.

Divestments including EOI business sale campaigns

Lead and execute business sale processes via proven independent EOI business sale campaigns.  Our services include the identification of a realistic buyer network, thorough Information Memorandums, competitive processes and highly confidential communications with interest parties ahead of date/time for final binding offers.  

Active senior lender management on behalf of borrowers

Ahead of potential covenant breaches or events of default in senior lending facilities, we assist borrowers with managing lender stakeholders eg leadership of waiver and standstill discussions and also term extension requests.  We add value with our deep commercial lender network and experience working with the banks and in so doing enable management to focus on business turnaround.

Turnaround plan advice and implementation

Performance improvement initiatives including cost control initiatives and establishment of a robust turnaround plan.               

Financial investigations for funds on current or target portfolio investments

On behalf of funds with underlying business portfolio investments, we provide insights to the fund that a regular Analyst does not normally provide given our deep experience.  Areas of focus include but are not limited to: earnings quality and sustainability, historical funding themes (by analysing balance sheets closely), working capital management, credit and financial metrics -v- industry, liquidity, security structure, refinance risk, directors (encompasses background searches, property searches, other companies they are a director of), estimate returns in an insolvency scenario.