#Value Creation: What Are the Low Hanging Fruit
in Optimizing a Financing Structure?
Many companies continue to face converging developments that have consumed liquidity (rising working capital, e.g., due to delayed customer payments (higher DSO), etc.) and continue to do so (energy prices, supply chain, etc.).
Especially for highly leveraged companies – such as #LBO – there is the additional challenge that
🔹 since the beginning of the year, the 3M Euribor and thus financing costs have risen significantly, and
🔹 this increased financing burden also results in a disproportionately higher tax expense due to the interest barrier rule.
Against this backdrop, it makes perfect sense to consistently leverage all available options for reducing financing costs.
Some low-hanging fruit are easily overlooked:
👉 Take advantage of #Leasing for upcoming investments!
👉 And consider Sale & Leaseback for existing assets!
What are the benefits?
👉 Additional liquidity with longer terms at lower costs!
👉 Without triggering the interest barrier rule!
👉 Without requiring the consent of syndicate banks!
Let's talk!
#LBO #PrivateEquity #Treasury #CFO #InterestBarrier
#Value Creation: What Are the Low Hanging Fruit
