Sale of Swiss flexible packaging companies Elag Verpackungen AG and Elsaesser Verpackungen AG to Ampac, USA
Role of Proventis Partners AG, Zurich: Exclusive financial advisor to the owner throughout the sales process
Sale of proofreading, adaptation and translation company WIENERS + WIENERS GmbH to Caldec Beteiligungen GmbH
Role of Hartmann Zillmer Corporate Finance, Hamburg: Exclusive advisor to the owners throughout the sales process
Acquisition of Medical Biomaterial Products GmbH by a family holding through a Management Buy-In
Role of Hartmann Zillmer Corporate Finance, Hamburg: Advisor throughout the acquisition process and realization of acquisition financing for the buyers
Private Investors acquire 100% of the shares of medi-cine medienproduktions GmbH from CompuGroup Holding GmbH
Role of von Proventis Partners Munich: Exclusive buy-side advisor in the acquisition process
Reviva AG acquires the majority of the shares of the Swiss tradition company Faude & Huguenin AG Medals and coins
Role of Proventis Partners Zurich: Exclusive sell-side advisor and support of restructuring in the Board of Directors
In general, acquisition finance can be separated into a
(a) financing structured based on the solvency of the buyer (corporate structure) and (b) financing solution based on the solvency of the target (leveraged structure).
Especially leveraged acquisitions yield both a high risk and a high upside potential. Limited equity needs allow for the take-over of a significantly bigger company to grow exponentially. On the other hand, a series of parameters need to be managed carefully to have a longterm success with the acquisition.
Elements of structured acquisition finance
Equity capital
Mezzanine capital
Vendor oans
Senior and junior loans
Earn-outs
Internal means of finance within the target
Practical rules for leveraged acquisition finance
The equity share in the acquisition vehicle (NewCo) should be minimum 30 % of the purchase price, for smaller transactions min. 40-45 %
The maximum debt capacity of corporations by rule of thumb should be no more than 3-times EBIT
The debt capacity can be enlarged, the higher and more stable the acquired EBIT is
Costs for mezzanine capital are significantly higher than senior/junior loans. Therefore, a mezzanine tranche of 1-1,5-times EBIT should not be exceeded.
Free Cash Flow should be around 1⁄4 of debt and 1⁄3 of total finance
In order to approach debt and mezzanine investors financial models are required, that take account of future deviations. As such the financing remains flexible enough with sufficient headroom that the covenants don't hamper future flexibility.
How can Proventis Partners be of help?
Proventis Partners arranges your financial solution with the best fit. You will be actively supported by Proventis during the entire process - from planning to execution. Based on our strong network, Proventis Partners will connect with the most suitable investor for your individual needs. Furthermore, you will benefit from the comprehensive industry expertise, the long standing transaction experience, smooth processes and the entrepreneurial background of the Proventis Partners team.
Your benefits at a glance
Access to Proventis Partners structuring skills
Tap on Proventis Partners investor contacts
Operational support in building financial models
Operational relief to spend more time on the core M&A process
Support by senior professionals in all project stages
