Debt Advisory

One of the key drivers behind this development is the gradual transformation of corporate financing in Germany. In the past, a company’s house bank often acted as the sole point of contact and provider of investment loans and working capital facilities. Today, however, companies can choose from a much broader range of financing instruments and providers. In addition to national banking partners, international investors and lenders are now playing an increasingly important role in corporate capital and financing structures. This shift not only changes the requirements placed on borrowers, but also significantly increases the complexity of structuring and raising corporate financing — and, where necessary, restructuring existing financing arrangements.

The circumstances under which companies engage financing advisors are diverse. They range from supporting organic growth initiatives and acquisition decisions to advising on refinancing or recapitalisation projects. However, it is particularly in situations where companies are on a critical path — such as breaches of covenants, liquidity shortfalls, or restructuring scenarios — that the professional support of a financing advisor becomes essential.

In such cases of financial restructuring, the advisor’s role is not limited to developing a viable financing concept with an optimal financing mix or raising new capital if needed. Typically, financial restructuring processes involve a large number of stakeholders with complex and often conflicting interests, which broadens the scope of the advisor’s responsibilities. Acting as a moderator and coordinator among all parties, the advisor provides structure and clarity to the overall process — drawing on experience and expertise that encompass not only financial aspects but also legal and tax considerations.

The debt advisor acts as the primary point of contact for stakeholders, coordinates activities, and represents the client in restructuring negotiations. In many cases, the client remains largely in the background and participates only in key negotiation rounds — for example, to resolve potential standstills or disagreements with other parties. Aside from that, the debt advisor limits interactions with the client to regular status updates on negotiation progress and alignment on next steps.

An alternative role of a debt advisor is that of an “extended workbench” for the client. In this scenario, the debt advisor does not officially act as the client’s advisor or representative towards external stakeholders. Instead, their role is limited to analysis, concept development, and acting as a sparring partner for the client throughout the process.