Debt & Equity Management

The mix of debt and equity — the capital structure — drives both the cost of capital and the financial risk of a business. Too much debt strains cash and raises risk; too little may leave returns on the table. Managing the balance is a continuing decision.

The firm advises on the right structure for the business's stage and risk appetite, and on restructuring the balance sheet where it has drifted out of shape.

Debt and equity management covers, including:

• Assessing the current capital structure and gearing
• The optimal debt-equity mix for the stage and risk
• Cost-of-capital analysis
• Refinancing and balance-sheet restructuring
• Coordination with fund-raising where new capital is needed

1. 01

   Assess

   Review the current structure, gearing, and cost of capital.

2. 02

   Model

   Model the options and their impact on cost and risk.

3. 03

   Recommend

   Advise the target structure and how to get there.

4. 04

   Execute

   Support refinancing or fund-raising to reach it.

PBT helps you get the capital structure right for cost and risk.

• A clear read of your gearing and cost of capital
• The right target structure for your stage
• Refinancing and restructuring support
• Joined up with fund-raising
• Scope, deliverables, and fees agreed in writing up front

• How much debt should my business carry?

  It depends on the stability of cash flows, the cost of debt, and your risk appetite. We model the options and recommend a target gearing.

• Can you help restructure existing debt?

  Yes. We advise on refinancing and balance-sheet restructuring where the current structure is straining the business.

• How long does it take?

  An assessment takes a couple of weeks; execution of refinancing or a raise runs longer.