"Redbridge’s support was decisive in coordinating the various stakeholders, obtaining very satisfactory terms and conditions, and optimizing the operational functioning of our program, all within a tight schedule."
Engagement overview
- Factoring program renewal in spring 2023 for the program implemented in 2012 and amended multiple times.
- Program size > €100m.
- Scope – 11 selling entities based in France, industry scope.
Objectives
- Reduce the all-in cost.
- Maintain the off-balance sheet feature of the program.
- Optimize the operational program’s efficiency.
Results
- Significant improvement in pricing conditions.
- Validated off-balance sheet treatment by auditors.
- Optimized operational program’s efficiency (netting, assignments and financings schedule, collection plan, etc.).
Methodology
- Upstream phase: analyze accounts receivable and the existing agreement.
- Initiate consultation process with 6 factors based on the upstream analysis and a target Term Sheet.
- Negotiate conditions on a bilateral basis with each factor.
- Finalize definitive Term Sheet and definitive technical specifications document, based on which the selected factor was invited to the credit committee.
- Prepare final documentation in collaboration with the statutory auditors to pre-validate the program’s off-balance treatment.
Redbridge’s added value
- Thorough analysis of the accounts receivable to precisely determine the Group’s needs and propose a suitable target Term Sheet.
- In-depth understanding of the factoring market conditions to identify areas for improvement of the existing agreement and critically evaluate the initially proposed structures by the factors.
- Bilateral negotiation process to reach an agreement on the terms to deliver the best financial conditions and legal terms.
- Oversight of the timetable and “fast track” process.