Financial Advisory Mandate for Automotive Balance Sheet Restructuring

Mandate Description

The mandate consisted of a financial advisory assignment carried out on behalf of a major Asian automotive manufacturer based in France, whose subsidiary operated a nationwide network of between two hundred and fifty and four hundred points of sale.

The objective of the assignment was to define the framework for new bank financing and to conduct an in-depth review of the subsidiary’s economic performance.

The mission aimed to support financial management in restructuring the balance sheet and improving key profitability indicators, within a context of profound transformation of the automotive sector.

Key Issues

One of the main challenges of the mandate was to determine an optimal debt structure while maintaining liquidity levels consistent with operational requirements.

The assignment involved a detailed analysis of financial aggregates, a sector-based benchmarking study and the modelling of several financing scenarios.

These scenarios integrated constraints specific to the French and European automotive markets.

The analysis also aimed to identify measurable improvement levers in financial management, profitability optimisation and capital structure efficiency.

Approach and Results

The intervention focused on a detailed review of historical financial statements and the construction of a forward-looking financial model.

• Comprehensive financial documentation was prepared for discussions with banking partners.
• This structured approach made it possible to define a financing architecture aligned with the operational needs of the subsidiary.
• It also strengthened management’s understanding of the key drivers of economic performance.

The assignment concluded with the validation of a new financing framework, enhancing the group’s financial strength and supporting its growth capacity in the European market.