1. Review and Assessment of existing Corporate Finance
Many clients appreciate an independent review and assessment of their operational RiskFinance. This requires a neutral approach based on a comprehensive expertise, experience and adjustment to ever changing market conditions.
STAHLMANN RiskFinance Solutions considers itself as “ambassador” of its clients. By a direct compensation based on actual workload, conflicts of interest are non-existing.
For well-known companies in force funding programs are periodically analysed, compared with the given change in requirements and further optimised. Of vital importance are the risk aversion of the finance director and the risk-bearing capacity of the corporate accounts. By implementing proper self-retentions, the risk awareness within the company can be raised and in consequence the cost of RiskFinance be considerably balanced. If, apart of these measures, an adjustment of the ongoing corporate finance is needed, the backing of the client in the implementation phase is optional.
2. Finance of Business Risks
In financing corporate exposures the echoes of the financial crisis are still felt. External providers of capital shy away from an individual risk evaluation and banks are in the process of reducing existing engagements due to higher capital requirements. Predominantly medium-sized companies and young businesses with an innovative business approach find it very difficult to finance future growth.
The passing-on of risks that could trigger a future default to specialised (re-) insurance carriers is advisable.
STAHLMANN RiskFinance Solutions has consulted about the transfer of complex corporate risks into the (re-) insurance market, enabling to stabilise corporate finance in a sustained manner.
- Hedging of performance fluctuations in the area of renewables.
- Transfer of catastrophic liability exposures related to the sales of product innovations / new technologies.
- Mitigating variation in sales due to a drop in customers demand.
3. Optimisation of Capital Costs
The traditional way of corporate finance is in transition. Debt provided by banks appears to be sufficiently available in the short-term. To fund a medium to long-term financing horizon however – particularly in light of the increased capital requirements related to Basle III / IV – becomes increasingly difficult. Many corporations are searching for alternatives to adjust their financing mix to capital needs that are evolving over time.
STAHLMANN RiskFinance Solutions supports its clients by searching for alternative sources of capital and the subsequent implementation. Examples are off-balance-sheet financial instruments provided by international investors and the supply of long-term debt by insurance companies. The capital becomes available at reasonable terms and a largely waive of decision-making rights.