Private Equity

Optimising the financing of your investments.

private equity et affacturage

Contexts encountered

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Financing the organic or external growth of your stake

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Increasing the financial autonomy of a stake, especially after a spin off or a carve out

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Financing an acquisition or a new business venture

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Making it easier to raise dividends

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Refinancing your acquisition debt

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Keeping your debt ratio down

Benefits of factoring

Avantage
  • Sustainable financing
  • Possibility of confirmation in the long term
  • Deconsolidation according to IFRS, French GAAP and US GAAP rules
  • Rapid set-up (about 3 months)
  • Resistance to changes in shareholders

Focus on Factoring and Private Equity

Factoring is a secure way to finance a company’s cash requirements. It is a financing technique increasingly favoured by Private Equity funds for their stakes.

Confidential factoring in balance financing mode is considered as a more efficient and reliable tool than revolving credit.

So when should factoring be considered?

Before signing

Our team helps you estimate the financing capacity the company has in its accounts receivable.

Between signing and closing

– It is important to ensure that the debt documentation authorises the use of non-recourse factoring and, why not, as a preventive measure, recourse factoring.

– This period can be used to initiate the factoring project with the finance team for the initial financing at closing or immediately afterwards.

At closing

If you have a structurally cash-generating business, factoring can be a way to facilitate the rebounding of available reserves.

Post closing

Factoring helps finance your external growth or restructuring cost. When the going gets tough, it can be activated, unlike revolving credits which will no longer be available if engagements are no longer respected

Before a divestiture

you make life easier for the purchaser by selling them a business that already has a good level of debt-free cash.

Business Case

Our mission: Study, call for tender and implementation of a deconsolidating factoring agreement within 3 months

Background: Sale of a large industrial group acquired by an investment fund

Objective: Receive the factor financing on the day of the acquisition by the investment fund, a prerequisite for the successful completion of the acquisition

Our achievments

  • Study and call for tender aimed at market Factors and Insurers, in an emergency situation (<3 months)
  • Setting up of a syndicate to meet the importance of the requested line (€ 400 million)

Information on the deal

  • Activity: Packaging
  • Country: France, Italy, Germany, Spain, Portugal
  • Customers: All types
  • Type of contract: Confidential balance divestiture
  • Line: € 400 million
  • % of financing: 97% of receivables transferred
  • Cost: <1%
  • Duration: 5 years
  • Credit insurance: delegated

Our added value

  • Acceleration of the decision-making process: obtaining a credit agreement within 4 weeks
  • Support and advice from the Finance teams throughout the project
  • Weekly estimation of potential financing between the signing and closing of the acquisition, to secure the final transaction
  • After the start of the operation: annual optimisation of the contract’s parameters (increased funding rate, reduced costs, optimising credit insurance to maximise deconsolidated funding, etc.), training of local teams