Debt Advisory
Debt Advisory Challenges
The biggest challenges include volatile market conditions, which make forecasts difficult, and the complexity of precise finance models with variable factors such as interest rates or industry trends. In addition, there are different sources of financing and diverging stakeholder interests, which make it even more difficult to implement strategies.
The balance between well-founded analysis and pragmatic solutions is therefore crucial.
Requirements
Professional debt advisory requires in-depth capital market expertise, independence from lenders, and the structuring capability to align a borrower's debt capacity, covenant constraints, and long-term corporate financing strategy.
Use Cases
Debt advisory engagements typically arise where financing decisions involve structural complexity: acquisition finance (including leveraged buyouts), refinancing of existing debt portfolios, growth and capex financing, project finance, and capital structure optimization in the context of a (debt) restructuring.
Documentation
Core documentation services include preparation of the information memorandum, structuring of the covenant package, and support in negotiating term sheets and facility agreements.
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Our Support
With many years of expertise, we support you in planning and implementing your debt strategy.
Yield curves for your needs
Yield curves are highly relevant for companies seeking to make sound financial decisions.
Valuation of bonds
Yield curves are used to discount bonds' future cash flows in order to assess their market value. Adjusting the yield curve to reflect creditworthiness, rating-related factors, and country-specific risk components is essential for accurate valuation.
Discount rates in IFRS accounting
In IFRS accounting, items are frequently depicted by the present value of their future cash flows. The prerequisite for this is the proper calculation of an appropriate discount rate. Typical areas of application include fair value valuations, the valuation of provisions as well as accounting for pension obligations.
Calculation of borrowing costs
Based on current market data, we derive risk-appropriate interest rates — using methods such as the analysis of comparable corporate bonds, or model-based approaches like Merton's structural models.
Risk Management and Hedging
Yield curves are a core component of risk management, particularly in the context of derivatives and interest rate hedging. Banks, insurance companies, and corporates rely on them to develop and assess strategies for mitigating interest rate volatility.
This is how we assist you with financing issues
Analysis and Strategy
First, we carry out a detailed analysis of the current situation and business planning in order to define the optimal target capital structure and check financial capacity on the market.
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Market Approach and Structuring
We prepare professional transaction documents (e.g. an information memorandum) and target suitable financing partners from our network in order to obtain competitive offers.
Negotiation and Closing
We actively assist you in evaluating the term sheets and in the final contract negotiations in order to establish the most favourable conditions and documentation standards in a legally secure manner.
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FAQ
What is Debt Advisory?
Based on a structured debt capacity analysis, suitable financing instruments are identified and target capital providers approached with precision. Acting as an independent advisor, we accompany negotiations with banks, institutional lenders, and capital market investors — with the objective of securing market-consistent terms and bankable debt documentation.
What are the benefits of Debt Advisory for companies?
The neutral advice not only benchmarks offered interest rates, but also supports objectivity and flexibility of contract terms and protects internal management resources. In addition, thorough preparation of financing documents strengthens the negotiating position and significantly increases the probability of success in complex transactions.
What specific services does Debt Advisory include?
In addition, advice includes the optimization of credit clauses and the long-term structuring of interest or currency hedges.
Which companies benefit in particular from Debt Advisory?
Companies in transition situations or with high refinancing requirements also benefit from the professional structuring of their liabilities. External expertise gives capital-intensive companies in particular improved access to diversified sources of financing and optimized conditions.
