Debt Counselling Services

Debt capacity is a function of free cash flow and net asset value

Debt capacity and financial structure

  • Based on your business plan, we develop a thorough financial model that analyses and assesses your debt capacity and associated risks
  • We advise on the optimal debt/equity ratio, taking into account your current and expected future free cash flow
  • We prepare the business case for debt financing, including scenarios for debt repayment in various future scenarios
  • We advise on sources of funding and the structure of obtainable funding

Realisation of the financing project

  • We have close contacts with Danish and international providers of debt products and we compile a list of potential partners we recommend contacting
  • We draft a presentation with a financial case
  • We contact potential debt partners and help you present the case
  • We obtain indicative offers and provide advice in connection with the conclusion of the head of terms or letter of intent (LOI)
  • We coordinate due diligence investigations and work closely with your legal advisors in preparing legal documentation

KEY ISSUES TO CONSIDER WHEN changing financing structure

Achieving the right debt/equity ratio and attracting debt on attractive terms have become complex matters that require addressing, among others, the following key issues:

  • Are the business plan, financial model and proposed financing structure well documented?
  • Do you have an overview of your debt capacity, including in relation to the expected future development of the company?
  • Do you know of alternative debt instruments and the market prices of such alternatives?
  • What is your company’s debt capacity and what options do you have to repay debt?
  • What security can you/are you willing to give the banks, and what are the main risks and your plan to mitigate these risks?
  • What is your “Plan B” if things do not go as expected?
  • How will you prioritise in an exit scenario?