Financial Structuring Mandate for an International Acquisition

Mandate Description

The mandate consisted of a financial structuring advisory assignment carried out on behalf of a European industrial group specialised in the processing of technical and composite materials.

The objective of the mission was to structure the debt financing required to support the acquisition of a North American company active in the manufacture and distribution of technical products for industrial applications.

The assignment aimed to define an optimal financing structure, ensure consistency between operating cash flows and debt repayment capacity, and coordinate discussions with financial partners located on both sides of the Atlantic.

Key Issues

The main challenges of the mandate were to structure a financing package in compliance with international regulatory frameworks.

A key objective was to calibrate a level of indebtedness compatible with consolidated post-acquisition operating cash flows.

The assignment also required modelling leverage scenarios based on the projected profitability of the target company.

Finally, the mandate involved negotiating financing terms, including pricing, covenants and guarantees, with lending institutions.

Approach and Results

The assignment relied on several complementary areas of analysis.

• A transaction cash flow model was developed, integrating exchange rate effects and cross-border tax considerations.
• Financing memoranda were prepared for lending institutions to support the fundraising process.
• The assignment also included coordination with legal and tax advisers during the negotiation and finalisation of credit agreements.
• The operation resulted in the implementation of a balanced debt structure combining senior financing, mezzanine instruments and complementary financial tools, ensuring both leverage sustainability and strategic flexibility for future acquisitions.

The work strengthened the group’s financial credibility with its banking partners and enabled the acquisition to be completed under favourable conditions.

This transaction illustrated the adviser’s ability to integrate international financial, tax and operational challenges in the structuring of complex acquisition financing.