Surge in Demand for Cooper Parry Debt and Capital Structure Advisory 
Added : 30th January 2009
Heath Walker says, "Debt and Capital Structure Advisory is a strategic service provided by corporate finance professionals for businesses who may not necessarily be financially distressed."
As the economy hurtles towards a financial tsunami, private companies are realising there is no longer a ripple in the Atlantic pond and UK business is in danger of drowning under the continued waves of the credit crunch. The much anticipated redundancies and corporate failures may have dominated headlines but the New Year was greeted with £140bn of UK corporate debt in need of re-financing and a continued flow of banking bailout initiatives.
Even for those where trading performance and cash flows have held up, this will have serious implications.
Put simply, the days of plentiful credit have disappeared. Yes, there continues to be a desire to support business but pricing has changed and the quantum of support may no longer be there. Many profitable businesses could even find an element of recapitalisation is required before existing debt facilities are extended.
Although private company shareholders understand the importance of driving improvements in profitability and working capital, few have sought to pro-actively review and manage their capital structure. The relationship between debt and equity is such that, as well as creating unnecessary strain on cash flows, inappropriate structures significantly impact underlying shareholder values.
It is against this background that Regional Business Advisers Cooper Parry is experiencing a surge in demand for their Debt and Capital Structure Advisory services.
Corporate Finance Partner, Heath Walker says:
"We have always supported those with an immediate re-financing need but are now seeing increased interest from businesses that, with the benefit of hindsight, recognise their funding package is no longer appropriate for the current environment.
Fundamentally, we review our client’s underlying capital structure and implement a robust solution which is appropriate to their business plan. It is our regular exposure to current market sentiments of debt and equity providers which means we are ideally placed to deliver a truly independent solution.
Debt and Capital Structure Advisory is a strategic service provided by corporate finance professionals for businesses who may not necessarily be financially distressed. Clients’ operational, financial and crisis management strategies for trading in difficult times will continue to be supported by our well established team of turnaround professionals.
Investment banks have provided a Debt Advisory service to plcs, large corporates and significant private equity backed businesses for a long time and we are delighted to be providing the region’s privately owned businesses with a comparable level of support.
Most recently, we supported a client’s plans for growth by combining an equity swap solution with a re-scheduled debt package."
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