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Our Structured Financing Solutions

1. Leverage Buy-Out (LBO)

Acquire a company with optimized leverage

An LBO allows you to acquire a company mainly through debt, repaid using the target’s future cash flows. It’s a powerful tool for acquirers, executives, or investment funds—provided the debt and holding structure are properly designed.

Benefits

  • Low equity contribution required
  • High return on equity
  • Tax shield through deductible interest
  • Strategic control via a dedicated holding structure

Types

  • MBO (Management Buy-Out)
  • MBI (Management Buy-In)
  • Sponsorless LBO (no investment fund involved)

Types of Debt

  • Senior debt (secured, priority)
  • Mezzanine debt (subordinated, higher yield)
  • Unitranche (hybrid, flexible)

Key Success Factors

  • Strong and stable cash flow
  • Robust governance
  • Committed management team
  • Dividend limitations (often capped at 50%)
  • Rigorous financial, legal, and tax due diligence

2. Asset Securitization

Turn your receivables or future cash flows into immediate liquidity

Securitization involves converting assets such as customer invoices, rental income, or subscriptions into financial securities sold to investors via a dedicated SPV (Special Purpose Vehicle).

01

Selection of assets to securitize

02

Creation of the SPV

03

Issuance of securities by tranches (senior, mezzanine, equity)

Benefits

  • Immediate cash inflow
  • Balance sheet optimization
  • Reduced banking intermediation
  • Unlocking of latent asset value

Common asset types

  • Trade receivables
  • Subscription contracts
  • Lease payments
  • Loan portfolios

3. Debt Restructuring

Reduce your financial burden to relaunch stronger

When a company faces repayment difficulties or undergoes strategic change, restructuring helps rebalance financial obligations.

Objectives

  • Lower debt service
  • Renegotiate interest rates or maturities
  • Convert debt into equity

Tools

  • Term extension
  • Grace periods
  • Subordinated or convertible debt
  • Court-led or out-of-court proceedings (e.g., ad hoc mandate, conciliation)

4. Sale and Leaseback

Free up liquidity without losing control of your assets

Sale and leaseback allows a company to temporarily sell a valuable asset (often real estate) with a buyback option. The asset remains in use and can be repurchased within 6 to 36 months.

Use cases

  • Immediate cash needs
  • Retain strategic asset usage
  • Avoid taking on new debt
  • Support turnaround or exit planning

5. Other Hybrid Solutions

Build tailored financing strategies for specific needs

  • Leaseback: sell an asset and lease it back immediately
  • Bridge financing: short-term loan to cover a transaction before refinancing
  • Participative or convertible debt: instruments blending debt and equity
  • Private debt funds: alternative, non-bank funding options with greater flexibility

6. Receivables Sales and Buybacks

Monetize your receivables to boost liquidity

Receivables sales allow companies to convert invoices into immediate cash, with or without transferring the credit risk.

Common structures

  • Factoring: sell receivables to a factor, with or without recourse
  • Dailly assignment: transfer receivables through a bank
  • Portfolio buyouts: one-off sales to funds or specialized institutions

Advantages

  • Debt-free financing
  • Reduced working capital needs
  • Outsourced collections
  • Protection against defaults

7. Strategic Synergies: LBO + Securitization

A powerful combination for a robust financing structure

Securitization can complement an LBO by injecting liquidity post-acquisition.

Example

  • An LBO is financed with senior and mezzanine debt
  • After the deal, €4M in receivables are securitized
  • Proceeds are used to repay the mezzanine debt

Outcome

  • Reduced pressure on operating cash flow
  • Improved debt ratios
  • Increased strategic flexibility

Finostra Capital is an independent advisory firm specialized in structuring complex financing solutions for SMEs, mid-sized companies, and family-owned groups.

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