We all read about inflation being fought with rate hikes and indexation relieving the pain. But what does that really mean?
The article below in De Tijd* shows that since a few months companies have become more careful in recruiting staff. In fact, 𝗦𝗠𝗘𝘀 𝘀𝗲𝗲𝗺 𝘁𝗼 𝗯𝗲 𝗴𝗿𝗮𝗱𝘂𝗮𝗹𝗹𝘆 𝗹𝗮𝘆𝗶𝗻𝗴 𝗼𝗳𝗳 𝘀𝘁𝗮𝗳𝗳, just like the large multinationals.
Figures from SD Worx Belgium show that 𝗶𝗻 𝗝𝗮𝗻𝘂𝗮𝗿𝘆 𝟮𝟬𝟮𝟯 𝘁𝗵𝗲 𝗼𝘂𝘁𝗳𝗹𝗼𝘄 𝗼𝗳 𝗽𝗲𝗿𝘀𝗼𝗻𝗻𝗲𝗹 𝗶𝘀 𝘁𝗵𝗲 𝗵𝗶𝗴𝗵𝗲𝘀𝘁 𝗶𝗻 𝟰 𝘆𝗲𝗮𝗿𝘀. A client of ours in the SAAS business receives more than 20 qualifying responses to a vacancy in 2 days…
The tanker is turning, the impact of the ECB is noticeable. Stefan Duchateau 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%?
𝗟𝗶𝗸𝗲 𝗺𝗮𝗻𝘆 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀, 𝗱𝗼 𝘆𝗼𝘂 𝗳𝗲𝗲𝗹 𝗮 𝗯𝗶𝘁 𝗼𝗳 𝗮 𝘀𝗾𝘂𝗲𝗲𝘇𝗲 𝗼𝗻 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆?
Then please contact us 📧
Ernest Partners 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!