Financing advisory
Investment, an acquisition, growth or refinancing requires a view of the amount, mix and terms of capital. We assess the funding requirement, develop financing options and support the process from approaching lenders and investors to negotiating financial terms.
Funding situations
What needs funding, and when?
The business plan and cash flow projections establish the purpose, timing and repayment capacity of the proposed financing.
- Growth investment and capacity expansion: aligning funding with construction, implementation and the ramp-up period.
- Acquisitions and shareholder buyouts: planning transaction funding alongside the ongoing needs of the business.
- Refinancing existing debt, changing the maturity profile or coordinating several financing instruments.
- Energy and real estate projects: modelling cash flows during development and operations, together with debt service.
Sources of capital
Bank debt, private equity and mezzanine.
Bank financing
Investment, acquisition and project financing structures, as well as refinancing. We assess facility size, tenor, repayment profile, security, financial covenants and the headroom available under them.
Private equity
Investor capital for growth and shareholder transactions. Alongside valuation and the interest acquired, we consider governance rights, future funding obligations and exit arrangements.
Mezzanine
Financing between equity and conventional senior debt, typically with a subordinated position. We examine cash-pay and capitalised returns, repayment timing, security ranking and any equity participation rights.
The advisory process
From funding requirements to agreed terms.
- 1
Capacity and financing structure
Quantify the funding gap, debt service capacity and required equity contribution using the business plan. Assess alternative structures and downside scenarios.
- 2
Materials and lender or investor approach
Prepare or review the financial model, business plan and financing presentation. Approach relevant banks and investors within an agreed scope and coordinate information requests.
- 3
Offer assessment and negotiations
Compare proposals on a consistent basis. Beyond interest and fees, assess drawdown conditions, prepayment terms, security, covenants and restrictions on operating or shareholder decisions.
- 4
Documentation and drawdown preparation
Support finalisation of the financial terms and work with legal advisers as financing documents are developed. Where included in the mandate, coordinate the financial information and evidence required for drawdown.
Decision criteria
The cost of capital and the flexibility to operate.
A lower interest rate may come with less flexibility if repayments, security requirements or covenants do not fit the business plan. We therefore assess financing options by their overall cost, risks and implications for shareholder objectives.
Deliverables
Typical outputs of an assignment
- 01Funding requirement and debt capacity analysis
- 02Financing structure and financial model
- 03Lender or investor presentation
- 04Consistent comparison of financing offers
- 05Analysis of financial terms and covenants
- 06Documentation and drawdown support
The advisory scope and feasible sources of financing depend on the circumstances of the company or project.
Let’s discuss the assignment.
An initial discussion helps establish the business context, your objectives and the advisory support required.