The right capital structure for your company

Build a financing structure that fits your business

A company’s capital structure should support its strategy, cash flow generation and risk profile.

At Ernest Partners, we help companies align funding maturities with assets and liabilities. The objective is to define a financing structure that fits the company’s cash flows, asset base and future plans.

This includes supporting decisions between equity, debt and alternative financing instruments.

Assess your capital structure

When should you look at your capital structure?

Capital structure becomes especially important when a company is growing, investing, acquiring or adapting to a changing business model.

Typical situations include:

the current financing structure no longer fits the company’s cash flow generation
existing debt levels or covenants limit additional borrowing capacity
there is limited access to traditional bank financing
funding maturities do not match the company’s investment horizon
the company is preparing for growth, investment or acquisition
rapid growth creates funding needs not fully addressed by current financing
the business model is changing
the company wants to diversify its funding sources beyond traditional bank financing
management needs to assess the right balance between equity, debt and alternative instruments

How Ernest Partners can help

Ernest Partners analyses the company as a whole, not only its current financing structure.

We look at the financial situation, existing debt, business plan, budget, cash flows and current context. We review the investment or project under consideration and assess whether the current capital structure still fits the company’s strategy, cash flow generation and risk profile.

Where needed, we build or refine the financial model. This allows us to assess repayment capacity, evaluate possible financing scenarios and determine the most appropriate financing solution.

Based on this analysis, we support management in defining the right financing structure, whether this involves equity, debt or alternative instruments.

Discuss your capital structure needs

Our approach

We work in three main phases: analysis, pitching and closing.

Analysis

We start with a comprehensive analysis of the company. This includes its financial situation, existing debt, business plan, budget, cash flows and current context.

We review the investment or project under consideration and assess how funding maturities are currently aligned with assets and liabilities. Where needed, we build or refine the financial model.

This phase allows us to determine the most appropriate financing structure, taking into account the company’s cash flow generation, risk profile and strategic objectives.

Based on this analysis, we also prepare the financial materials and financing presentation, including the company’s strategy, financial situation, funding needs, key business risks and the actions taken to mitigate them.

Pitching

During the pitching phase, we approach selected financiers, usually pre-approved by the client, and present the company, its capital structure and financing need in a clear and convincing way.

We manage discussions, meetings and Q&A with financiers. Where relevant, we explore several financing solutions in parallel to compare interest, structure and terms.

Closing

We advise the client on the final financing structure and support decision-making.

We assist in aligning terms and conditions with all stakeholders, obtaining credit approval and negotiating financing documentation. We remain involved until the transaction is successfully completed.

What you gain

A well-aligned capital structure improves financial stability, flexibility and lender confidence.

The main results are:

a financing structure aligned with the company’s strategy

better alignment between assets, liabilities and funding maturities

financing instruments adapted to the company’s cash flow generation

improved financial stability

greater flexibility for growth, investments or acquisitions

a clearer view on the right balance between equity, debt and alternative instruments

stronger lender confidence

Why Ernest
Partners?

Ernest Partners works side by side with clients throughout the process, from initial analysis to the final outcome.

Our team combines financial expertise with hands-on experience. We help clients understand their working capital position, identify where improvements are possible and take the right steps to strengthen liquidity.

Get to know us

Real Estate Asset Management

Fievez-Beyens

A thorough analysis of the financing structure of the Fievez-Beyens residential care group led us to successfully secure €6 million in working capital financing.

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Real Estate

Leoville

Raising €24 million in Holding and Senior Debt to refinance existing debt and fund further growth of an impact-focused real estate portfolio.

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Biotech manufacturing

Barré

Buy-out of partner’s shares and acquisition of a competitor to create a group leader of the sector. Support in optimizing the financing structure and securing a complex funding notably including equity and €5m+ senior debt

Discover the case