We all read about inflation being fought with rate hikes and indexation relieving the pain. But what does that really mean?
The article below inย De Tijd* shows that since a few months companies have become more careful in recruiting staff. In fact, ๐ฆ๐ ๐๐ ๐๐ฒ๐ฒ๐บ ๐๐ผ ๐ฏ๐ฒ ๐ด๐ฟ๐ฎ๐ฑ๐๐ฎ๐น๐น๐ ๐น๐ฎ๐๐ถ๐ป๐ด ๐ผ๐ณ๐ณ ๐๐๐ฎ๐ณ๐ณ, just like the large multinationals.
Figures fromย SD Worx Belgiumย show that ๐ถ๐ป ๐๐ฎ๐ป๐๐ฎ๐ฟ๐ ๐ฎ๐ฌ๐ฎ๐ฏ ๐๐ต๐ฒ ๐ผ๐๐๐ณ๐น๐ผ๐ ๐ผ๐ณ ๐ฝ๐ฒ๐ฟ๐๐ผ๐ป๐ป๐ฒ๐น ๐ถ๐ ๐๐ต๐ฒ ๐ต๐ถ๐ด๐ต๐ฒ๐๐ ๐ถ๐ป ๐ฐ ๐๐ฒ๐ฎ๐ฟ๐. A client of ours in the SAAS business receives more than 20 qualifying responses to a vacancy in 2 daysโฆ
The tanker is turning, the impact of the ECB is noticeable.ย Stefan Duchateauย writes it well in his article**: a company with a profit margin after interest (EBT) of 10% of its turnover and a financing ratio of 4 X EBITDA sees its profit margin (EBT) decrease by the same percentage per % interest increase of 1 percentage point percentage.
What if you have just made a major investment or an acquisition and your debt ratio is even higher, and your profit margin was not already 10%?
๐๐ถ๐ธ๐ฒ ๐บ๐ฎ๐ป๐ ๐ฐ๐ผ๐บ๐ฝ๐ฎ๐ป๐ถ๐ฒ๐, ๐ฑ๐ผ ๐๐ผ๐ ๐ณ๐ฒ๐ฒ๐น ๐ฎ ๐ฏ๐ถ๐ ๐ผ๐ณ ๐ฎ ๐๐พ๐๐ฒ๐ฒ๐๐ฒ ๐ผ๐ป ๐น๐ถ๐พ๐๐ถ๐ฑ๐ถ๐๐?
Then please contact us ๐ง
Ernest Partnersย specializes in advising companies on debt financing. Restructuring, renegotiating financing is our business. We work together with the major banks in Belgium, but we also know well the alternative financiers who can also help. One phone call can make all the difference!
