Debt Advisory

In the area of Debt Advisory, we support companies of different sizes with new or follow-up financing as well as with the optimization of their liability structure and creditworthiness.   

This includes advising on the procurement of debt capital, the renegotiation of credit terms or the restructuring of existing debt.  

The aim is to develop a customized strategy to improve financial stability and flexibility and thus set the course for further growth and an increase in company value.  

Our team of experts with interdisciplinary expertise will provide you with comprehensive support until you achieve your individual financing goals.

Our advisory services

We support private companies, such as family businesses, as well as public companies in a wide variety of financing situations. The reasons for financing can be very different:

  • Investment  
  • Working capital requirements (cash, guarantee)  
  • Growth financing  
  • Prolongation or rescheduling of existing loans  
  • Acquisition, LBO and MBO  
  • Project financing  

We are also an established partner in critical phases, e.g. in the event of impending covenant breaches or in reorganization situations. We help our clients to maximize their financing options, improve their liquidity and optimize the liabilities side of their balance sheet.

Our range of services includes:

  • Carrying out risk and financial analyses  
  • Analyzing liquidity planning  
  • Advice, preparation and support for financing strategies (including in crisis situations)  
  • Preparation of key financial figures for internal monitoring and 
  • External communication (e.g. information memorandum, teaser or reporting to stakeholders)  
  • Development of measures to improve key figures  
  • Creditworthiness assessment & rating advisory measures  
  • Calculation of refinancing costs  
  • Identifying, approaching, negotiating and drafting contracts with capital providers  
  • Support with the creation of a credit story  
  • Identification of funding programs, application for funding, support through to notification of funding including subsequent usage checks

Our added value for you

BDO takes a holistic view of your corporate or investment strategy, analyses your existing financing structure and validates the specific financing requirements. We advise you on the selection of suitable financing components and then support you in the implementation process.  

Our broad knowledge of the market and our diversified industry expertise enable us to select the right financing solutions for you - including alternative or innovative forms of financing - and thus minimize your financing costs.

Financing structures

Various financing modules are available for the implementation of a selected financing strategy. In practice, the following debt capital instruments are particularly relevant:

Bank loans are still the main financing instrument in Germany - especially for owner-managed companies.   

For larger volumes, several banks participate in the loan as part of a consortium. There is a wide range of complexity here: from a ‘simple’ syndicated loan for general corporate financing purposes to a complex, multi-stage instrument - especially for leveraged buyouts.  

In addition to banks, institutional investors act directly or indirectly as alternative lenders. Under the term ‘private debt’, medium-sized companies in particular can often obtain financing for takeovers or refinancing, among other things, via a small number of contacts within the framework of fund or securitization structures.   

Bonds are securities issued by a company for financing purposes in return for the transfer of a capital amount to third parties. They are listed on the stock exchange, long-term, securitised and transferable or tradable. According to the terms and conditions of the bond, the issuing company is obliged to repay the capital amount at the end of the term and usually also to make interest payments during the term.  

A promissory note loan is a bond-like loan that is granted to companies or public institutions by lenders such as banks, capital collection centers or insurance companies. Compared to bonds, the issue of a promissory note is significantly less complex and allows a high degree of flexibility due to its customized structure. 

Due to their special design, hybrid financial instruments have a hybrid character between equity and debt capital.   

  • In the case of a subordinated loan, the lender subordinates its repayment claims to the claims of other creditors on the basis of a contractual agreement.  

  • Profit participation rights are purely debt-based creditor rights that represent part of the liable equity capital due to a subordination clause and loss participation. Nevertheless, the creditor has no claims under membership or company law.  

  • By contrast, profit-participating loans are loan agreements with atypical remuneration arrangements but without loss participation. Instead of the usual fixed interest rate, a variable remuneration based on the company's performance is granted.  

  • Convertible bonds and bonds with warrants are securities which, in addition to the claims to interest and repayment, also securitize the right to become a shareholder of the issuing company under fixed conditions. 

The inclusion of public subsidies is a pillar of corporate financing that should not be neglected, especially for small and medium-sized enterprises (SMEs). Public funding is provided in the form of non-repayable grants, subsidized loans or real or quasi-equity investments.  

BDO’s team of experts

Our interdisciplinary team of debt advisory experts has extensive experience in the entire financing process, from financial analysis to the individual development of the financial strategy and its implementation. Your BDO team is made up of experienced specialists who regularly provide business and tax advice on financing processes for companies from a wide range of industries as well as legal advice via our co-operation partner BDO Legal Rechtsanwaltsgesellschaft mbH.

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Corneles-Jasper Hornig ppa.

Corneles-Jasper Hornig

Senior Manager, Corporate Finance
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