We work with management teams where a transaction or business requires funding or support is needed in reviewing the market to understand what financing options are available on a transaction, or to put into effect a growth or restructuring plan.
The team has over 60 years of experience on all sides of a debt transaction, having worked for advisers, lenders providing funding, lenders recovering funding and as borrowers working in commerce. This breadth of knowledge brings deep commercial insight but also a hands-on, practical approach which is responsive and focused on the task at hand.
There may be a wide range of financing available to suit all sorts of plans and requirements, but the wrong lender or the wrong covenants within a facility are at best a distraction, inhibiting the ability of management to run the business as they wish, or at worst can fundamentally undermine the business.
How we work
We work with the management or investment team to understand the operating model and capital structure of a business and its debt capacity across different funding options, through seasonal and economic cycles. Then we look in detail at the cash flow to identify and mitigate liquidity pinch points. This enables us to work with management to find the best solution for both the short-term and into the medium-term as the business develops or its strategic direction changes. Different businesses, even within the same sector, can have different optimum capital structures, so technical expertise, commercial experience and market intelligence are key to getting the best result.
From working capital to making capital work for you
Debt is a critical component in the business model of many companies, but even where a business can operate entirely without debt, the ability to borrow against assets or earnings can be used to extract value more effectively than by way of dividends and without forgoing future growth upside by way of sale.
Our colleagues in K3 Tax Advisory are able to deliver bespoke solutions to shareholders and investors on realising value in their business.