Corporate Finance Consulting

Equity Acquisition

The fact is that, compared to the rest of Europe, the private equity ratio of German middle class ranks at the bottom, representing less than 20% of the balance sheet total. Approximately 65% of the fixed assets are covered by private equity capital.

External funds, including accrued liabilities, frequently exceed 80% of the fixed capital. As a result, in addition to the familiar dependencies and risks, a strong dependency on creditors such as banks, insurers or suppliers occurs. This becomes particularly hazardous if at some point the company encounters a financial imbalance.

Therefore, one of the prime tasks for entrepreneurs and financial managers is to strengthen equity capital. In this context, we advise clients regarding acquisition of:

Equity capital
Mezzanine capital
Typical inactive partners
Atypical inactive partners
Private equity investors, acting management partners, limited partners or shareholders
Subsidies
Venture capital

It is therefore imperative to change an adverse balance sheet in order to meet the requirements of a critical balance sheet analysis. As a result, the debt service “normalises” and the future of the business is secured.