Your goal
Have the first signs of financial difficulties become apparent, or is a potential liquidity crisis or breach of covenant imminent? In such circumstances, it is crucial that you respond proactively in order to retain control of the situation and keep your liability risks to a minimum.
Our services
We develop a transparent, fact-based strategy for stabilizing your financial situation. Using tried-and-tested methods, we determine possible liquidity needs and present various options for covering these. We develop a clear basis for negotiations that takes the requirements of all investors into account. We also help you in your communications with internal and external stakeholders. On request, we can provide experienced managers via Andersch Management GmbH and will personally assume responsibility for successful implementation of the defined measures.
Your benefits
- Quick overview:
within one to two weeks, we provide you with a short-term liquidity plan and detailed forecast of your liquidity needs.
- Professional support:
with over 20 years of experience in handling challenging company situations, we are deeply familiar with both the information requirements of investors and the options open to borrowers.
- Practice-based advisory services:
our experienced specialists use sophisticated, highly structured processes to secure or regain control of the respective financial situation.
The most important steps toward stabilizing your liquidity include:
- determining the liquidity status: we ascertain the liquidity status of each company as of a fixed date
- short-term, week-by-week liquidity planning: here we take into account the cashpool participants and the applicable legal and factual obligations
- transparent presentation of liquidity needs and surpluses
- development of measures to close possible liquidity gaps
- regular monitoring of divergences, implementation of a rolling forecast
- timely communication with internal and external investors
- assistance with any necessary negotiations regarding interim financing
Client situation
- stagnant growth and declining EBITDA margins
- launch of a performance program intended to facilitate proactive responses to future market challenges
- the purchase of remaining shares from a former joint venture partner combined with a high level of foreign participation had led to an increased need for capital
- credit line reduced and existing financing measures set to expire
Andersch’s mandate
- to develop a robust corporate plan as the basis for refinancing; to restructure the financial covenants structures
Achievements
- an accelerated financing process thanks to the targeted preparation of documents necessary for decision-making
- implementation of integrated corporation planning
- The existing investors extended the credit line and reduced the interest rates
Client situation
- successful completion of restructuring phase
- refinancing measures to replace soon-to-expire interim financing
- a future growth program required expansion of the existing financing framework
- existing covenant structure unfit for the challenges ahead
Andersch’s mandate
- validation of multi-year planning
- determination of financing needs, proposal for revision of financial covenants
Achievements
- “Andersch Proof” served to increase the credibility of financing documents
- refinancing tranche significantly oversubscribed
- revised covenant structures provide management with greater latitude, while preserving the early indicator function for investors
Learn more about working with Andersch:
Success stories