Debt advisory and credit assessment
Debt advisory and credit assessment services can help CFOs to face financing challenges.
Corporate Europe will see €600 billion of debt reach maturity over the course of the next three years after borrowing heavily in the credit boom years (2005-2008). Unfortunately, there is likely to be a significant shortfall between the amount of credit available and that required for refinancing. By implication, the cost of financing is likely to rise.
The changing financial environment has resulted in funding solutions for companies becoming increasingly more complex and more time consuming to put in place. Senior management is now faced with a more challenging business environment that requires new funding solutions to match changing business models and strategies.
Debt advisory and credit assessment can help CFOs to face the following challenges:
- Improving the cost of financing and optimising funding structure from a financial, tax and risk perspective.
- (Re)negotiating of credit facilities
- Evaluate different types of debt and financing options
- Need of temporary or additional liquid funding or working capital
- Current balance sheet structure doesn’t maximise shareholder value
- Lack of clear visibility on their outstanding debt (maturity, credit institution, rate, covenants, warranties, etc.)
- Analysis of existing debt arrangements and suggestions on how to improve cost and flexibility of debt (cost of financing).
- Preparing investment documentation aimed at attracting and informing potential new lenders (banks, private equity, SNCI), facilitate discussions with potential new lenders.
- Assessing possibilities to obtain grants & subsidies (LU, EU).
- Financial modeling and current credit assessment including tax optimization.
- Assessing proposals from lenders and advising on the negotiation of proposals.
- Assessment of exaggerated personal guaranties asked by banks.
- Access to international financing sources via Deloitte global network and assistance in structuring and arranging highly customized financial solutions.