Financing – Restructuring, Turnaround and Working Capital
At HUB Advisory, we have been helping entrepreneurs and executives overcome their strategic and financial challenges for ten years
We look for the best financing option for each company, taking into account their specific situation and future challenges
Securing financing is a top priority and concern of businesses these days, but it cannot be done without considering future strategic and business decisions. Our team has the expertise and capabilities to mitigate uncertainty and align business and financial decisions without neglecting short-term requirements.
REFINANCING AND RESTRUCTURING
– Feasibility plans
– Financial projections and stress minder
– Structural balance sheet optimisation
– Debt restructuring
– Bank pool management
– Debt reorganisation according to origin and conditions, maturities, strips, guarantees, indicators, etc.
– Financial projections and stress minder
– Structural balance sheet optimisation
– Debt restructuring
– Bank pool management
– Debt reorganisation according to origin and conditions, maturities, strips, guarantees, indicators, etc.
WORKING CAPITAL FINANCING
– Financial working capital
– Non-conventional financing; debt funds, project finance
– Technical and economic guarantees and advances
– Foreign business; import-export financing, letters of credit
– Analysis and optimisation of banking costs, syndicates.
– Non-conventional financing; debt funds, project finance
– Technical and economic guarantees and advances
– Foreign business; import-export financing, letters of credit
– Analysis and optimisation of banking costs, syndicates.
CASE STUDIES
CHEMICAL PRODUCTS COMPANY
Refinancing of a 34-year-old company with recurring revenue in the range of €20 MM
The problem
– A drop in sales of more than 40% due to circumstances beyond management’s control.
– Impossibility of correcting the imbalance.
– Inability to meet maturity commitments on financial liabilities.
– €9 million in debt, almost all with financial institutions: pool of 14 banks.
– Working capital financing: import/domestic, reverse factoring, credit accounts and invoice discounting.
– Financing of non-current investments: loans.
– Inability of owners to secure new financing.
– Impossibility of correcting the imbalance.
– Inability to meet maturity commitments on financial liabilities.
– €9 million in debt, almost all with financial institutions: pool of 14 banks.
– Working capital financing: import/domestic, reverse factoring, credit accounts and invoice discounting.
– Financing of non-current investments: loans.
– Inability of owners to secure new financing.
The approach
– Diagnosis of the situation and quantification of viable alternatives.
– Consensus with the owners on the work plan and the most feasible way to solve the liquidity problem.
– Consultation with different institutions regarding both the diagnosis of the situation and the way forward.
– Refinancing proposals and bilateral negotiations, prioritising the most important institutions.
– Coordination of independent review of the business by a ‘big four’ firm (IBR).
– Signing of a term sheet containing the terms of the agreement.
– Consensus with the owners on the work plan and the most feasible way to solve the liquidity problem.
– Consultation with different institutions regarding both the diagnosis of the situation and the way forward.
– Refinancing proposals and bilateral negotiations, prioritising the most important institutions.
– Coordination of independent review of the business by a ‘big four’ firm (IBR).
– Signing of a term sheet containing the terms of the agreement.
Results achieved
– Refinancing agreement signed for 84% of the liabilities.
– Judicial approval of agreement on 100% of liabilities.
– Seven-year loan with one-year grace period and quarterly instalments, with no additional guarantees other than those on the balance sheet.
– Lines of financing for working capital outside financial institutions.
– Judicial approval of agreement on 100% of liabilities.
– Seven-year loan with one-year grace period and quarterly instalments, with no additional guarantees other than those on the balance sheet.
– Lines of financing for working capital outside financial institutions.
HOTEL GROUP
Financing investment that grew the hotel group’s revenue from €4M to €18M
The problem
– A hotel chain with expectations to grow through investment in real estate and new hotels.
– Target growth from 4 hotels to 10 hotels in three years.
– EBITDA of 35%.
– Owners had no additional investment capacity aside from the cash flows generated.
– Owners not interested in new partners.
– Goal was to achieve growth through financing.
– Target growth from 4 hotels to 10 hotels in three years.
– EBITDA of 35%.
– Owners had no additional investment capacity aside from the cash flows generated.
– Owners not interested in new partners.
– Goal was to achieve growth through financing.
The approach
– Diagnosis of the situation and quantification of cash generation alternatives and financing possibilities.
– Consensus with the owners on the work plan and the most feasible way to secure financing.
– Different financial institutions approached regarding the objectives and expectations.
– Identification and management of bank and non-bank financing.
– Proposals and negotiations with financial institutions and debt funds.
– Signing of a term sheet containing the terms of the agreement.
– Consensus with the owners on the work plan and the most feasible way to secure financing.
– Different financial institutions approached regarding the objectives and expectations.
– Identification and management of bank and non-bank financing.
– Proposals and negotiations with financial institutions and debt funds.
– Signing of a term sheet containing the terms of the agreement.
Results achieved
– Growth from 4 to 10 hotels in three years.
– Revenue growth from €4M to €18M.
– Investments undertaken using the cash flow generated (40% of need) and third-party financing: 70% bank debt for 3-5 years and 30% in 5-year bullet bonds.
– Revenue growth from €4M to €18M.
– Investments undertaken using the cash flow generated (40% of need) and third-party financing: 70% bank debt for 3-5 years and 30% in 5-year bullet bonds.