Most suitable financing structures and financial balance are a prerequisite for the successful implementation of corporate strategy and a precondition for growth, development and profit. Lending decisions are increasingly based on special rating criteria. The requirements of Basel II, the minimum requirements for tighter lending and the increasing internationalization of financial markets for lending reduce the discretionary decisions of the banks. Medium-sized enterprises suffer from low equity ratios and are often still extremely cautious in providing information to their lenders.
Listed companies regularly have investor relations departments: A mixture of financial and advertising specialists, whose job is keeping the shareholders informed about the financial situation, future prospects and business operations. Small and medium-sized enterprises neither have investor relations departments nor shareholders. But they do have lenders, asking for positive, reliable and understandable information like shareholders. Sending out inadequate, dubious or confusing information will not cause a falling share price, but the credit rating will be reduced. To us creditor relations means the active information and relationship management to lenders.
Our consulting services
We advise SME in financial matters:
- What kind of funding?
- Debt or equity?
- Which bank?
- Which participation?
- What steps to achieve a better credit rating?
We design corporate structures according to the increasing credit requirements. Through spin-offs and conversions of businesses (parts or in total), we often can utilize hidden reserves without tax disadvantages and hence achieve higher equity ratios. We design the bank reporting, create reports and forecasts in a "hands on"-way and we assist in financing negotiations with banks.
Measures for more freedom
Effective measures to recover financial margins are, for example:
- Recognizing financial risks and creating transparency
- Uncovering hidden reserves without tax disadvantages, e.g. through transformation, outsourcing and transfer of holdings and sub-holdings
- Restructuring the liability side
- Equity strategies – financing growth properly
- Portfolio adjustments – reorganising business activities and increasing liquidity by concentrating on core areas
- Selling non-operating assets
- Creating sustainable enterprise structures / Mergers & Acquisitions