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Financial & Capital Market Services

The focus of our financial services is strategic advice and support of our clients in the most diverse forms and types of capital market transactions. Especially when it comes to the expansion of companies to be realised via bank-independent financing, we work together with you to develop smart strategies for medium or long-term project or corporate financing and implement them.

Our services are based on our extensive expertise in the structuring, selection, and monitoring of tailor-made capital market transactions. A qualified and resilient network of specialist institutions complement our performance profile. We support our clients in various European capital markets at every stage of the process, ensuring a smooth process right up to the IPO and beyond.

The right capital market strategy

Only a capital market strategy tailored to financing requirements and business model can effectively support the growth policy of your company.

From a wide range of financing instruments, we design tailor-made products that fit your business model and your capital requirements. We examine minimum requirements for company size, quality of financial reporting, and your internal organization regarding transparency and communication.

Equity Capital Market

Private Placements

Against the backdrop of Basel II and the general reluctance of banks to grant loans because of the restructuring of the lending business of banks, companies are increasingly taking advantage of private placement. This is the off-exchange issue of company shares. In contrast to a fund, the circle of shareholders remains small and manageable and allows individual support of the investors.

In the case of a private placement, additional investment instruments are available, for example, in which equity capital is placed by private investors as a non-voting, widely dispersed investor capital. The possibilities for investment are broader and often more interesting than a securities issue through the listing on the stock market and cover the entire range of “mezzanine” financial instruments. Above all, non-vested, and thus more cost-effective, non-voting participations can be issued on the off-exchange capital market, with sometimes considerable tax advantages for companies and investors. The influence of the lenders can be limited by contractual agreements. There are no other shareholders and no other partners, as only private investors are taking part. As a medium-sized entrepreneur, you remain the only “master in your own house”.

Initial Public Offerings (IPO)

IPO is an abbreviation for “Initial Public Offering”. It stands for the initial offering of shares of a company on the capital market. The motivation for a stock exchange can have many different reasons. First and foremost, the company can receive financial resources in the form of equity through the public issue of shares. This capital injection is often used for growth and expansion strategies of the company. At the same time, the share of foreign costs is reduced and the credit rating increased.

For an IPO, you should take into account that this step is not only a personal and cost-intensive matter, but also a very time-consuming one. From the first steps to the issue date, it usually takes 12 to 18 months, very well-prepared IPOs make due with six to twelve months.

If you are not able to access anyone internally who is familiar with the organization and implementation of an IPO, you should look for an IPO consultant at an early stage. We would be glad to assist you when it comes to saving you a lot of work, as well as a lot of money and time. We know the prices and the players in the market well. Do not hesitate to contact us.

Share buyback programs

Companies buy back shares to use or collect them as an acquisition currency for corporate acquisitions. This reduces the number of shares outstanding which in turn increases the value of the individual share. Shareholders must agree to the repurchase of shares, which is usually limited to a certain period and normally set at the maximum share price.

Stock repurchase programs are very popular among investors because of the positive side effects. The additional demand for the shares initially leads to rising prices. All other shares thus represent a higher percentage of the company’s profit because the company does not distribute profits to itself, and thus the fair value of the shares increases. As a result, buyback programs are often seen as an alternative to dividends. It is important in the planned release of a stock repurchase program that your company has sufficient liquidity for the operating business and that the share is quoted with an appreciable discount on the intrinsic value. We will gladly assist you as objective experts in the analysis of the situation.

Debt Capital Market

Convertible bonds

Convertible bonds are fixed-interest bonds issued by joint-stock companies. They are defined by an issuer, an interest coupon, a limited term, and a nominal value. In addition, they are equipped with a conversion right for their owner who can convert the bond into a certain number of shares of the issuing company during the term.

With a convertible bond, the issuing company can intelligently convert its debt into equity in the form of share issues. Once the conversion has taken place, the issuer no longer must make any interest payments and can waive the repayment of the capital procured through the convertible bond.

In view of the historically low interest rate, convertibles are increasingly the focus of investors. A convertible bond can profit to a large extent from a share uptrend and still have a relatively limited downside risk.

Debentures

Debentures are similar to bonds, but they do not represent securities and cannot be traded on the stock market. Therefore, the interest rate for debts is slightly higher than the interest rate of comparable bonds. A processing fee is also charged.

However, the use of this alternative form of financing for SMEs can make sense. The company becomes less dependent on lending institutions. For several years, this financing variant has been used frequently and actively by medium-sized companies since it has proven to be good training for communication with investors. At the same time, the companies become known to a wide range of investors and, in addition, do not need to fear any say of the capital investors.