Growth activities such as the commercialization of new products, opening of an additional production site or personnel growth require liquidity. This liquidity and securing existing liquidity is necessary to enable constant, sustainable corporate growth. Corporate growth can be organic or inorganic. Organic growth naturally occurs through efforts such as entering new markets, regions or countries as well as finding new customers or establishing new products. Inorganic growth is achieved through company acquisitions. The necessary liquidity for the next growth step can only in a few cases be provided from already available liquid funds and thus the next step usually requires growth financing.
Securing growth with the right financing plan
Every growth strategy requires a thorough financing plan. This plan describes how much financial resources are needed at a certain time and how the cash flow is to be achieved. If the financing round is successful, the financing requirement must be constantly monitored. Goods, personnel and services constantly draw resources from the cash flow. Plans are based on experience to the best of one’s knowledge and conscience. However, many aspects, such as sales revenues, are difficult to predict. The plan must be compared with the actual figures on an ongoing basis. Under certain circumstances, countermeasures may have to be initiated or even further financing may be necessary at an early stage.
An exclusive classical bank financing offers a solid basis for the procurement of debt capital. In addition, there are methods for raising equity capital, such as equity financing or shareholder contributions. Another method of capital procurement is mezzanine financing, which includes all types of financing that represent a mixture of equity and debt capital. Mezzanine financing can be structured in a variety of ways and can take on a similar character as equity or debt capital. These individual financing components of various methods can be combined in different and individual ways to create a suitable financing mix. Negotiating a coherent overall concept for growth financing requires not only experience and knowledge of the possible applications of the financing instruments, but above all negotiating experience and skills.
EUROCON negotiates growth financing that promotes sustainable growth
EUROCON advises companies from a wide range of industries, draws up a financing plan tailored to your needs and secures the financing process. A broad financing basis promotes organic company growth and at the same time reduces the dependence on individual capital providers. EUROCON finds the optimal financing type and composition to suit the chosen corporate objective. We work closely with banks and financing partners – nationally and internationally – to secure the growth financing of our clients. Our goal is to negotiate a future-oriented, transparent financing mix of equity and debt capital – always for the success of our clients.