Debt advisory. PRECISE. PROVEN. PERFORMANCE.

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Anissa Parrish
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1 Debt advisory PRECISE. PROVEN. PERFORMANCE.

2 Debt advisory Access to appropriate debt funding is key to supporting a company s day-today operations and growth. However, for many companies, access to and obtaining the appropriate debt funding can be challenging as it s often difficult to evaluate which institutions are open for business and to ensure the best terms and conditions. Many companies are also tied in to facilities at uncompetitive rates of interest. The current low interest rate environment and the growth in the types and sources of funding over recent years means that there has never been a better time for companies to consider their debt funding options. Moore Stephens debt advisory team provides a full service to businesses who wish to raise new debt finance and replace or restructure current facilities. Key benefits of Moore Stephens debt advisory service 1 2 We can reduce the cost of borrowing and improve overall terms and conditions We make sure that debt facilities are appropriate for the nature of your business and to support your company s growth 3 4 We have access to a broad range of debt providers and can achieve the right type of debt funding for you We manage the process of provision of information to, and negotiation with potential lenders, thus enabling senior management to focus on day-to-day operations

3 Types of and reasons for debt funding Working capital finance Inventory, work in progress, debtor funding through invoice discounting. Acquisition finance As businesses grow, they seek to expand by acquisition and thus may require senior and long term debt to fund such acquisitions. Asset finance Long term finance to support purchase of plant, equipment, property, etc. Other forms of debt Including mezzanine finance with or without warrants that convert to equity under certain circumstances. Refinancing to improve terms After growth or increased profit, finance may be available on more advantageous terms; or facilities may have been agreed a while ago and terms are no longer competitive. Current funding is inappropriate for the needs of the business As a business evolves, its debt financing and structure needs to evolve as well. Diversifying your relationship base It is beneficial to have relationships with more than one bank, in case one bank is less competitive than another or does not offer the specific service you require.

4 How we can help Applications for debt finance require detailed explanatory documentation and financial information that fully meets the standards and requirements of the banks and other potential lenders. Moore Stephens is expert in ensuring your business is prepared and presented in the most appropriate way. We will manage the project from beginning to end, developing and preparing the following to ensure you get the best debt package available: 1 Strategy and preparation We will prepare a debt strategy for your business as well as getting your business ready, to ensure it gets the best debt package available. 2 Financial projections We will assist in the preparation of financial projections for your business, designed to meet the lenders requirements and can also be used by your business going forward. 3 Information memorandum We will prepare a professional memorandum on your business for presentation to potential lenders, tailored to provide the lenders the information they require. This will include operational, financial and commercial information. 4 Banks and debt funders We have contacts across a host of lenders from high street banks to specialist lenders, which we will approach, and on your behalf, solicit indicative terms from them. 5 Comparing and negotiating the different debt offers We will compare the offers and present them on a comparable basis, guiding you through the process to ensure the debt package most suited to your needs is selected and obtained under the best terms and conditions.

5 Case studies The case studies below represent just a few examples where our debt advisory team has added value to businesses across a diverse number of sectors. Business 1 Acquisition finance Our client wished to acquire a company as part of its growth strategy. However, it could only finance half the acquisition price. We used the entity being acquired to finance approximately 50% of the acquisition price. Business 2 Significant reduction in interest rates A business had accumulated multiple lines of debt from multiple debt providers over the past few years. The interest rates being paid were up to 9%. We managed to consolidate these forms of debt into two facilities from one provider and also reduced their interest rate to 6%. Business 3 Global refinancing Our client with operations in the UK and multiple Asian countries had numerous debt facilities provided by a range of different lenders around the world. We consolidated these loans into a range of facilities from one bank, significantly reducing their administrative requirements, increasing the total amount of debt available to them, and lowering overall cost of debt.

Contact information If you would like further information on any item within this leaflet, or information on our services please contact: Philip Bird Debt advisory Partner, Corporate Finance philip.

6 Contact information If you would like further information on any item within this leaflet, or information on our services please contact: Philip Bird Debt advisory Partner, Corporate Finance Brian Keane Debt advisory Manager, Corporate Finance Moore Stephens LLP, 150 Aldersgate Street London EC1A 4AB T +44 (0) We believe the information contained herein to be correct at the time of going to press, but we cannot accept any responsibility for any loss occasioned to any person as a result of action or refraining from action as a result of any item herein. Printed and published by Moore Stephens LLP, a member firm of Moore Stephens International Limited, a worldwide network of independent firms. Moore Stephens LLP is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Authorised and regulated by the Financial Conduct Authority for investment business. DPS33961 August 2017

Financial modelling. Corporate Finance PRECISE. PROVEN. PERFORMANCE.

Financial modelling. Corporate Finance PRECISE. PROVEN. PERFORMANCE. Financial Corporate Finance PRECISE. PROVEN. PERFORMANCE. Financial Working with business owners Businesses seeking capital are faced with an obligation to provide financial projections to potential stakeholders.