Germany ยท Industrial manufacturing
A family owned manufacturer needed to fund an automation programme but did not want to dilute ownership or extend its Hausbank relationship further.
The company owned a large base of well maintained machine tools carried at low book value. Its bank lines were already committed against property and a term loan.
The automation project had a clear payback under three years, but no lender would extend further unsecured exposure at the required size.
We valued the owned plant on an orderly liquidation basis and built the case around asset cover rather than leverage against earnings.
Two asset finance houses with German engineering experience and one pan European lessor were approached. Independent valuation and maintenance records were supplied up front, which removed the usual four week diligence delay.
EUR 4.2m was released through a sale and leaseback over five years, priced fixed, with no change to existing bank security.
The automation programme was funded in full and the family retained one hundred percent of the equity.
Details are anonymised. Figures are rounded and identifying information is removed or altered to protect client confidentiality. Past transactions are not a guarantee of future outcomes.
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