1. Appraisal, evaluation and optimization of liquidity management and refinancing
Companies are struggling with inflationary energy and commodity prices and increasing protectionism. In addition, rising interest rates have a negative impact on the financial result. Addressing these uncertainties requires a holistic view of the balance sheet, which is manifested in the "golden financing rule". According to this, the duration of the capital tied up in the assets of a company should correspond to the duration of the capital commitment, i.e. the period in which the capital is available. If, in particular, long-term assets are financed with short-term funds, the borrower must be able to generate adequate follow-up financing at maturity. Otherwise, there is a funding gap. A complex task that STAHLMANN RiskFinance Solutions manages for its clients.
In a first step, STAHLMANN enters historical and budgeted balance sheet figures, supplemented by available off-balance-sheet funds and buffers for any financial uncertainties, into a "Financial Strength Analysis Tool" developed in-house. The amount of the company-specific funding gap results from this tool-based modeling. The following view on the "weighted average cost of funding" determines the future "finance mix".
All types of "Asset Based Finance" and "Capital Structure Based Finance" available on the market are individually combined. Experience has shown that there is a lot of potential for more efficient liquidity management on the asset side in particular, which will be tapped during implementation. The mix put in place by STAHLMANN resolves existing funding gaps and facilitates optimized costs and conditions.
2. Interim management finance and treasury
The interim manager Bert Stahlmann is a proven expert in corporate finance. As an interim finance executive, he develops, among other things, viable, customized financing concepts that are crisis-resistant. Deficits in CFO management are quickly recognized and remedied. Funding risks, which – especially in times of crisis – can jeopardize the continued existence of the company, are avoided.
The interim manager draws on an extensive experience in accounting, treasury and risk management. He optimally coordinates the terms of the use of capital (OPEX and CAPEX) and the origin of capital (on-balance and off-balance sheet financing). He finds and combines the types of financing whose costs are below the profitability of the company. With the implementation of such a tailor-made capital management approach, he lays the foundation for continuous business success.
The facets of the initiated optimizations include efficient controlling, the improvement of treasury processes and the increase in company results. Compared to the costs of the mandate, savings of up to 1.000 percent were repeatedly achieved. The return on equity increases as a direct consequence. This approach also lifts the company's perception and rating on the capital market, which opens up additional capital for increasing efficiency and supporting further growth at more attractive terms and conditions.
3. ESG strategy development from implementation and its controlling to climate neutrality
The term “ESG” has established itself as the standard for sustainability. From the point of view of a CFO or commercial manager, "Corporate Social Responsibility" (CSR) focuses on environmental issues, the "Environment - E", and the associated capital flows. In order to reduce or compensate for CO2 emissions, one can essentially switch to renewable energies completely or invest in the conversion of production to “green”. In addition, the company can make another voluntary contribution to revising its negative carbon footprint by making money available for third-party activities. Alternatives in this aspect are Carbon Avoidance and Carbon Removal.
With Carbon Avoidance, the company buys certificates from project developers who put climate protection projects to avoid and reduce greenhouse gases in place. In order to compensate for unavoidable residual emissions, unconventional measures to remove CO2 from the atmosphere are also necessary, the Carbon Removal. The company can invest in such projects as a so-called balancer and in return receives a credit on its emissions.
Adapted to the individual ESG success factors ("KPI") of the company and the comparison with a broad implementation experience, STAHLMANN RiskFinance Solutions finds the optimal combination of the outlined fields of action. Switching to renewable energy sources is easy, relatively inexpensive and offers the greatest effect on the carbon footprint. Investments in sustainable production are usually lengthy and expensive. In between are the various voluntary forms of attribution of positive climate effects from the activities of third parties. In their evaluation, social aspects and not the costs should be central.
With the implementation of the measures proposed by STAHLMANN, the company gains a resilient investment budget and adapted, controllable processes. In addition, it meets the expectations of its customers for a sustainable supply chain. For the company, there is an image gain in terms of external perception, taking action instead of "greenwashing". The desirable goal of climate neutrality is moving a decisive step closer.