The impact of COVID-19 on businesses has been unprecedented. Despite substantial government support, many companies are currently facing challenges with incremental cash, working capital and liquidity constraints that will probably extend into the foreseeable future.
Other companies have seen their growth plans truncated along with the capital injection that came with those. And yet others have had to take on funding that wasn’t appropriate in its terms, size or nature, and will be looking to refinance this as business activity settles into the “new normal”.
At a time when access to capital has become even more critical for many businesses, the current finance landscape has increased in complexity with varying funding options, due diligence processes, documentation requirements and lending criteria.
Furthermore, in an environment where lenders are overloaded with enquiries for debt funding whilst prioritising support to existing clients, new opportunities will be considered on a selective basis to reflect increased market risk. This will require businesses to be as diligent as possible if they want to succeed in their funding applications.
This increasingly complex and competitive environment for funding probably makes the role of expert, independent advisors even more relevant to help companies succeed in getting appropriate funding.
In addition to giving access to our wide network of lenders, we at CBW provide a high quality and confidential advisory service to businesses looking to raise new capital or refinance existing debt facilities. This includes:
• Assessment & diagnosis – review your business’s capital structure, undertake cash flow analysis and quantify cash needs and its uses required to support your business going forward;
• Risk management & corporate restructuring – our Tax and General Practice departments will be able to advise on any corporate restructuring required to minimise the tax impact and any associated risks in the transaction;
• Preparation of a Funding Memorandum on your business and of any documentation package to support your application;
• Managing the funding process including negotiations with existing lenders, approaches to new potential funders, meetings and negotiations with these, supervision of any due diligence process and advise in relation to legally binding loan facilities documentation;
• And ultimately, ensuring that you get the best terms for the optimal structure that meets your needs.
CBW has a strong expertise in a wide range of capital raising and refinancing transactions and debt advisory in a variety of sectors. Some of our team’s recent transactions include:
• Debt capital raise for Chase Cooper Holdings Ltd.
• Debt capital raise for a leading firm of architects based in London.
If you are interested in learning more about how we can help you in these difficult times, please contact our Corporate Finance team.