Corporate Finance

The recent turmoil in the capital markets and wider economy has created a marked increase in opportunities but that is set against the back drop of a dramatic reduction in the availability of senior debt lending which means we need to be more creative. Whilst working with clients in the current market we are focused on utilising many Corporate and Personal financial products to ensure a deal can be closed.

Historically a larger multiple of EBITDA drove up the enterprise value of a target with the availabilty of credit and liquidity more than able to ensure that the deal could be delivered. Now a lower multiple results in a suppressed value therefore a greater opportunity for medium to longer term growth but to complete the deal may take multiple layers of funding or multiple products such as asset finance, debt, equity, debtor funding or a capital raise from another business or asset.    
Our core service to Corporate scale businesses is to source and structure banking products and funding. We also provide consultancy services to Corporate clients who have experienced a breach of covenant with their current funder. In addition to the core services above we also have the expertise to provide strategic financial and structural reviews, financial modelling or to draft business plans for either a new or current lender's consideration. 

For some Corporate clients the current market represents an opportunity to acquire or to refinance on to low cost medium term fixed rates. BOEBR and Libor are projected to stay at low levels for the coming months but this has created an opportunity for Corporate lenders who are seeking to capitalise on this by increasing their interest margins. The clients who we have helped refinance have been moved away from illiquid banks to more stable long term funders (some of whom are new entrants) to protect their business from the risk of being associated with an unstable lender.

Cashflow or acquisition finance at a certain level remains challenging to secure with lenders in this space providing facilities at higher than usual arrangement fees and interest margins. There are still lenders operating in this space although the quality of the proposal needs to be very thorough to ensure funding is available. 

There are still economic movements that are affecting certain historically strong sectors (such as Healthcare) but as in most markets where one funder may not see the attraction of a deal another may have appetite. 

In addition to the core elements of the deal lenders are focusing on securing any additional property or private banking cross sale opportunities. In some cases it may make sense to re-bank wholesale to one lender but as evidenced in the recent turmoil split banking has its advantages. 

Our team has the experience and track record to act as lead adviser on a private transaction for a client looking to acquire a business or prepare their business for sale. 

In this space we provide clients with access and advice on: Senior Debt, Mezzanine Finance, Equity Investment, Structured Asset Finance and Acquisition Finance plus others.  

Please contact us for further information on how we can help you secure competitive products and pricing.