FCF MidCap

(Revenues of € 100+ millions)

We help designing the right investment or credit story with the best possible terms & conditions for our clients

Best possible
terms &
conditions

We develop and implement financing strategies for our MidCap (“Mittelstand”) customers, usually headquartered in the DACH region. Our customers are typically privately-owned or stock-listed companies with a long-standing operational history and track-record and revenues between EUR 75m and 2,500mn, an EBITDA in excess of EUR 7.5m and / or overall financing requirements of at least EUR 20m, predominantly from the traditional German industries, such as, amongst others:

  • Automotive supply
  • Business services
  • Chemicals
  • Construction & infrastructure
  • Forestry, paper & packaging
  • Industrial machinery & plant engineering
  • Metals & materials
  • Pharma
  • TMT (technology, media & telecommunication)
  • Transport & logistics

Over the last 15 years, FCF has gained vast experience and track-record, helping us to understand the challenges of our clients in their respective industries. We advise and support our clients’ management on all their financing requirements – from working capital, through growth, capex & investments, re-financings, acquisitions, etc. all the way to special financing situations such as management buy-outs / buy-ins and succession planning.  We help designing the right investment or credit story in order to attract high interest from debt or equity providers in order to generate a competitive financing process and, hence, the best possible terms & conditions for our clients.

WHAT WE DO

While developing and implementing financing strategies and structures, FCF benefits from its widespread network, which aims to cover all financing providers targeting MidCap (“Mittelstand”) corporates within the DACH region. We furthermore advise on any financing instrument (and combination thereof) available to our target customers, including, amongst others:

Debt financing instruments / advisory

FCF has long-standing relationships with most commercial and business development banks addressing the German-speaking countries.  We advise on any kind of bank loan facilities, such as bilateral loans, club deals syndicated loans, etc.  Financing facilities may include short-term and long-term loans, e.g. for overdrafts, working capital requirements, borrowing base facilities, capital expenditures or investment facilities, growth financing, acquisitions and other corporate purposes.  In addition to commercial bank financing, our experience also includes “subsidised” financings from business development banks such as, e.g. Kreditanstalt für Wiederaufbau (KfW) or European Investment Bank (EIB).

Leasing / Sale-and-lease-back: As an alternative for traditional capex / investment financing facilities, leasing has a long-established track-record and may be used by companies in addition to other mid- to long-term financing instruments. In addition to serving as a pure financing instruments, leasing – and especially sale-and-lease-back – can also be used to structure diversified financing strategies and improving the overall credit worthiness and rating.

Factoring / Reverse factoring / Inventory Financing / etc.: Especially for corporates within the manufacturing trade, efficient working capital management may be challenging. FCF advises and supports its clients in any kind of working capital financing, such as, inter alia, factoring, reverse factoring, inventory financing or borrowing base facilities.

Corporate bonds: To achieve a diversified base of both, financing instruments and financing providers, for corporates with larger financing requirements, capital market financing instruments, such as corporate bonds, promissory notes (“Schuldscheindarlehen”), or private placements may offer interesting options – either as an addition or as an alternative to the more traditional financing instruments.

Private lending facilities: While so-called debt funds used to predominantly invest in acquisition financings as well as lower-rated companies, today, such private lending facilities can be an alternative to bank financing also for corporates in the cross-over or lower investment grade sector. A vast number of private lending providers offer financing solutions for almost any kind of risk and rating profile, starting with senior secured (or, as the case may be, unsecured) facilities, participations in syndicated loans or club deals, through so-called stretched senior and unitranche financings, all the way to mezzanine and preferred-equity structures.

In certain situations where a typical senior financing may not be feasible or sufficient, FCF also advises on alternative or supplementary financing structures, such as, inter alia, second lien, subordinated or mezzanine financing. In some cases, this may in-clude near-equity instruments, such as quasi-equity / economic equity, preferred equity or convertible funding.

Equity financing instruments / advisory

Admittedly, in the German, predominantly family-owned corporate MidCap segment, capital increases from third parties (outside of the incumbent shareholder universe) do not exactly occur very often. However, especially in growth or acquisition cases (amongst others), a capital increase might just do the trick. FCF advises on both, minority and majority investments from private equity, family offices / high-net-worth individuals as well as strategic investors.

Based on the right business case, strategy and equity story, an Initial Public Offering (IPO) can support the required financing. FCF supports its customers in the preparation and execution of IPOs, advising regarding the feasibility, timing, structuring, placement and management of the IPO process as well as regarding investment bank and investor selection. Through its extensive network, FCF accompanies its clients not only regarding IPOs in Germany, but also in other European countries as well as the US.

An incumbent shareholder would like to sell its investment – in full or in part? FCF advises on block trades, including the search for and placement of shares to new investors, regardless of whether it is a new minority or majority shareholder.

FACTS & FIGURES

Team Professionals

Team of

10

investment banking professionals with 100+ years of experience

Network

Extensive Network of

300+

financing providers with excess to senior decision makers

Volume

In excess of

€ 4bn

total transaction volume advised by FCF

Transactions

More than

100

completed transactions in 15 years

Research

Over

10

periodically updated research reports

SELECTED TRANSACTIONS

Infrastructure Company

Guarantee & Debt Facilities
November 2019
€ 20 million

Doppstadt Familienholding GmbH

Syndicated Loan, Factoring & Warehousing Facility
June 2019
€ 80 million
pfenning transaction

KMP Holding GmbH

Factoring Facility
March 2019
[amount confidential]
ziegler transaktion

Ziegler Holzindustrie GmbH & Co. KG

Syndicated Loan Facility
July 2017
€ 70 million
Schnellecke Group AG & Co. KG Transaction

Schnellecke Group AG & Co. KG

Promissory Note
June 2017
€ 55 million

SMALLCAP / MIDCAP RESEARCH SERIES

The FCF SmallCap / MidCap research reports are periodically updated and cover eight specific sectors as well as certain general capital market developments. Based on the data of publicly listed European corporates, the respective sector and market are individually analyzed. Our systematic analyses include information to, amongst others:

Sector Research

Sectors covered by FCF research include automotive supply, chemicals, forestry / paper / packaging, industrial machinery, logistics, infrastructure & construction, metals & materials, pharma as well as TMT (technology, media, telecommunication).
Fundamental analysis, such as historic and anticipated growth rates (e.g. revenues, profitability) as well as margins.

Analysis of company valuation drivers, such as trading multiples, etc.

Key financial ratios for debt transactions, financing structures and WACC-development.

Rating development, analysis of the rating impact of key financial ratios.

Transactions, analysis of financing volume, league tables of most active investors.

Research on the infrastructure & construction sector based on available data from European infrastructure & construction companies.
Planned
Infrastructure & Construction Monitor
Research on the pharma sector based on available data from European pharma companies.
Planned
Pharma Monitor
Research on the TMT sector based on available data from European TMT companies.
Planned
TMT Monitor
Research on the infrastructure & construction sector based on available data from European infrastructure & construction companies.
Planned
Infrastructure & Construction Monitor
Research on the pharma sector based on available data from European pharma companies.
Planned
Pharma Monitor
Research on the TMT sector based on available data from European TMT companies.
Planned
TMT Monitor

Automotive Supplier Market Study
Research on the automotive supplier sector based on available data from European automotive suppliers.

European Chemicals Market Study
Research on the chemicals sector based on available data from European chemical companies.

Forestry Paper and Packaging Market Study Cover GenericForestry, Paper and Packaging Market Study Research on the forestry, paper and packaging sector based on available data from European forestry, paper and packaging companies.

Industrial Machinery Market Study
Research on the industrial machinery sector based on available data from European industrial machinery companies.

Metals and Materials Market Study CoverMetals & Materials Market Study
Research on the metals & materials sector based on available data from European metals & materials producers.

Logistics & Transportation Market Study
Research on the logistics and transport sector based on publicly available data from European logistics and transportation providers.

Infrastructure & Construction Monitor
Research on the infrastructure & construction sector based on available data from European infrastructure & construction companies.

Pharma Monitor
Research on the pharma sector based on available data from European pharma companies.

TMT Monitor
Research on the TMT sector based on available data from European TMT companies.

Market Research

The FCF market research covers e.g. fundamental analysis of interest rate and margin development in the German corporate lending / debt market, development of the rating and credit standing of banks addressing the German MidCap corporate lending market, etc.

Bank Monitor
Analysis of the historic and current spreads of credit default swaps for banks most active in the German corporate lending market.

IPO Market Monitor
Providing relevant valuation metrics (e.g. ratios, multiples), general information and performance data of European IPOs that have been issued within the last six months.

Valuation Monitor
The FCF Valuation Monitor is a comprehensive quarterly valuation analysis (e.g. ratios and multiples) for the German small / midcap market segment of selected industry sectors.

Credit Monitor
Comprehensive analysis of the interest rate environment and loan market for corporates in Germany.

NEWS & PRESS

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