Financing Arrangement
As companies grow and evolve, the need for external financing often arises. Financing may be required to fund investments, support growth, finance acquisitions, optimise the existing financing structure, or achieve other strategic objectives. Selecting the right financing solution and designing an appropriate funding structure can have a significant impact on a company's financial stability, growth potential and long-term competitiveness.
In addition to traditional bank financing, companies have access to a wide range of alternative funding sources, including bond issuances, institutional financing, structured financing solutions and equity financing. The optimal financing structure should be tailored to the company's business model, financial position, growth objectives, ownership structure and objectives, and the prevailing capital markets and interest rate environment.
Why Equilor Corporate Advisory?
Over recent years, Equilor Corporate Advisory has taken part in carrying out numerous significant corporate financing and refinancing transactions. Our experts have broad experience in bank and institutional financing, acquisition financing, bond issuance, structured financing transactions, and debt refinancing.
We are among the few domestic firms that have direct access to both bank and capital markets sources. Through our extensive domestic and international financier relationships, we reach a wide range of banks, capital markets investors and other financiers for our clients. Our advisors provide support throughout the entire lifecycle of the financing process, from developing the financing strategy and the appropriate funding structure, through identifying potential financiers and investors, coordinating negotiations to the successful close of the financing transaction.
Our goal is to develop a financing solution for our clients that best fits the company's strategic goals and financial characteristics, while securing the most favourable financing terms possible.
Financing options
Corporate financing solutions can generally be grouped into three categories: equity financing, debt financing and hybrid financing instruments that combine features of both. The optimal financing structure depends on the company's stage of development, financial position, growth objectives, financing requirements and strategic priorities.
Equity financing
When is it worth raising equity?
Raising equity can serve different purposes at different stages of the company's lifecycle, and the pool of potential investors changes accordingly.
Early-stage companies
In the start-up and early growth phase, the primary purpose of raising equity is typically to finance product or service development, market entry, scaling the business model and initial growth. In this phase the funding is typically provided by venture capital funds, business angels or other early-stage investors, since traditional debt financing is still only available to a limited extent.
Growth and mature companies
For more mature companies, raising equity typically serves strategic growth goals such as capacity expansion, carrying out new investments, financing acquisitions, research and development projects or international expansion. In this phase the investor base consists primarily of private equity funds, family offices, institutional investors and strategic investors.
Possible forms of capital raising
The transaction can take place through a private or public capital raise, and through the sale of a minority or majority stake. The optimal transaction structure is determined in every case by the company's financing goals, the owners' intentions and the pool of potential investors.
Equilor Corporate Advisory supports its clients throughout the entire lifecycle of the capital raising process. Our advisors contribute to developing the capital raising strategy and the appropriate transaction structure, to preparing the company valuation and transaction documentation, and to identifying potential strategic and financial investors.
We coordinate investor outreach, negotiations and the due diligence process, and support our clients throughout the contract negotiation process until the successful completion of the transaction. As a member of the Pandea Global international M&A network, we provide access to a broad range of domestic and international investors, helping maximise investor participation and achieve transaction terms that best support the company's strategic objectives.
Debt financing
When is it worth raising debt?
Debt financing is primarily a suitable funding option for companies with stable operations, predictable cash flow and adequate creditworthiness.
Debt can finance a range of business goals, including providing working capital, carrying out investments and developments, financing acquisitions, project financing purposes, and optimising the existing financing structure.
Range of Financing Providers
For debt-based financing, the pool of financing providers typically consists of commercial banks, development banks and other credit institutions. In the case of bond issuances, the funds are primarily provided by institutional investors (investment funds, insurers, pension funds, asset managers and other professional investors).
Equilor Corporate Advisory supports its clients throughout the entire financing process. Our advisors assist in designing the optimal financing structure, identifying potential financing providers, preparing the financing documentation, and coordinating negotiations through to the successful completion of the financing transaction. Drawing on our extensive financing and capital markets expertise, we support clients in arranging bank financing, bond issuances and other structured financing solutions. Our experts have also advised on the preparation and execution of numerous private and public bond issuances in the Hungarian capital market.
Related financing services
Beyond traditional financing transactions, companies may encounter a range of financing related events that require specialised expertise and careful coordination. Equilor Corporate Advisory has extensive experience in advising on refinancing transactions, lender consent processes and credit rating assignments.
Refinancing
Changes in market conditions, the interest rate environment and a company's financing requirements may make it appropriate to review its existing financing structure. The objectives of refinancing may include reducing financing costs, optimising the maturity and repayment profile, or securing financing terms that better support the company's strategic objectives.
Equilor Corporate Advisory reviews the existing financing structure, evaluates available refinancing options, advises on the optimal refinancing solution, and coordinates negotiations with financing providers throughout the refinancing process.
Lender Consent Processes
Acquisitions, capital raisings and other corporate transactions often require the consent of existing lenders or bondholders. In such situations, obtaining waivers, change of control consents and other lender approvals can be critical to the successful completion of the transaction.
Our experts support clients throughout discussions with lenders and bondholders, coordinate the consent process, and assist in the preparation and negotiation of the required documentation. Where a more appropriate financing solution is available, we also advise on refinancing the existing debt.
Credit Rating Advisory
For certain forms of financing, a credit rating plays a key role in expanding a company's financing options and determining the financing terms available. A strong credit rating can improve access to financing, broaden the pool of potential financing providers and help secure more favourable loan or bond financing terms. Credit ratings are particularly important for bond issuances, large syndicated or bilateral bank financings, and other institutional funding transactions.
Obtaining a credit rating requires the preparation and presentation of detailed financial, business and operational information, comprehensive data collection and ongoing dialogue with the credit rating agency. Thorough preparation and effective coordination are essential to ensuring an efficient and successful rating process.
Equilor Corporate Advisory supports clients throughout the credit rating process by assisting with the preparation of the required financial and business documentation, coordinating interactions with the credit rating agency, and providing professional guidance at every stage of the process to help ensure a structured and efficient rating assignment.
