Anyone who has had to deal with cancer in their environment knows the word. It creeps up on you inconspicuously and harmlessly. Only when you have to take a closer look, and you have to, does the entire threat gradually unfold. More and more business representatives are now describing the sprawling bureaucracy that is devouring resources and having a destructive and destructive effect on the economic system as a cancer. The new administration in the USA is responding to this problem with bloodletting, ignoring the actual causes and putting on a big show. The formation of a government in Germany has not yet signalled the promised impetus for change and is unsettling due to power- and self-interest-driven communication. Money fleeing the capital markets is now looking for a new home with smaller and medium-sized companies: Bonds, mezzanine financing, minority company shares - financed by small asset managers and wealthy private individuals. Due to collapsing funding systems in our European neighbours and projects fleeing from US policy, Germany is currently attracting a lot of interest. How can we manage to avoid scaring off these opportunities with a jungle of regulations and utilise them for the creative industries? A great opportunity for unregulated, smaller companies. An insightful report from the M&A Excellence Days in Frankfurt.
The exploratory documents on the film industry read rather generally and abstractly - almost identical in wording to music and games. Current problems loom specifically in the award procedures, documentation obligations and the increasingly difficult interim financing of funding. In addition, committee commitments are always subject to the funding agreement and ultimately compliance with the key figures and benchmarks. How is a normal commercial bank supposed to grant a loan on this basis? Possible solutions were presented at the Excellence Days organised by the German Association for Mergers & Acquisitions in Frankfurt last week.
Especially for larger bridging loans of 5 million euros or more CREDION AG a privately financed alternative to commercial banks. In addition, the market is virtually flooded with financing consultants and agencies. Rising interest rates and the decreasing risk appetite of bankers are creating space for new offerings. AI-based analysis tools in particular are now making it possible for smaller players and those from outside the industry to offer their services. A development that is moving at breakneck speed.
If you want to sell your company or bring a strategic partner on board, you have a range of interesting options at your fingertips. Corresponding analysis tools enable direct access to investor databases in the second step. If you wanted to sell a medium-sized company, you had to reckon with costs in the mid six-figure range. Especially the valuation of complex assets, which are often not or insufficiently recognised in the balance sheet, increases the costs.
The top priority continues to be a strong knowledge of the sector on the one hand and transaction experience on the other. Buyers are usually repeat offenders who know exactly what to look out for, which strategies pay off and how the purchase price can be lowered in the last few metres. Buyers, on the other hand, often need help translating into the world of the creative industries. Funded projects, depreciated but profitable goods (especially in the case of the Fundi) and access to top personnel must be priced in.
There are also a variety of solutions and alternatives for bonds, mezzanine financing and combinations. Access to a group cash pool, for example, can often solve acute problems.
P.S.: If you need help here, please contact International Film Partners well advised. Ensiders receive preferential conditions.
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and the Ensider:Team