The long -term securing of liquidity and a tax optimally set up financial structure form the basis of every healthy company. Especially in economically tense times, this not only serves resilience, but can also show development opportunities for future projects and urgently needed investments.
“As is well known, Austria’s economy is in the recession. To hope that the storm will pass by is never a good strategy. Rather, you should take these more difficult times as an opportunity to evaluate and optimize your own financing structure,” explains Dr. Michael Grahammer, partner at BDO. “Numerous examples from practice show that in many companies – and also in large infrastructure projects – undetected potential is slumbering to optimize the financing mix. It must be recognized and used to ensure liquidity.”
Which factors determine an optimal financing structure for companies? An adequate securing of liquidity, the optimization of the capital costs, consideration of tax effects, necessary financing needs for growth, investments and M&A activities, risk management considerations, considerations for the market perception of one’s own creditworthiness and creditworthiness as well as the attractiveness for investor: inside. Some of these factors are also interacted. Last but not least, the long -term corporate continuity is guaranteed by continuous securing liquidity.
It is important for investments and infrastructure projects that, in addition to considerations for interest insurance and thus better predictability, the financing must be guaranteed in the long term and taking into account all covenants of credit contracts (e.g. Loan-to-Value). Due to the current interest rate environment, long -term interest rate fixations should be checked in order to achieve better predictability and thus increased security.
In a group of corporations, the question also arises as to which society specifically takes up the financing on what conditions, collateral and covenants. The same applies to project financing: Should the financing through the company itself (on-balance) be carried out or is a outsourced project/purpose company (off-balance/non-recourse) more sensible from profitability and/or security considerations?
With every specific investment project, regardless of the company or project size, detailed questions about an optimal financing mix, contractual terms, ordering collateral, agreements from (financial) covenants. These are by no means trivial, can only be clarified in individual cases and must be tailored to the respective corporate strategy and the requirements of the shareholders: inside and other interest groups. Incredible financing structures in the worst-case scenario can dramatically increase the insolence converts or lead to bankruptcy. “In contrast, well -founded financial planning not only ensures the continued existence and sustainable growth of the company in the long term, but also in the case of urgently needed infrastructure projects also the security of care and the standard of living in Austria,” says Michael Grahammer.
Bridges to the future: Success factors for infrastructure projects
Datum: 03.04.2025, 10:30 a.m. – 03/03/2025, 12:00 p.m.
Art: Lectures and discussions
Ort: Webinar
URL: https://events.teams.microsoft.com/event/1a0e4d1f-10ee-4638-a6d2-fe74cb555e7d@5b08a87b-ccb1-42b6-8194-3add2b960bd3