The Challenge
An engineering firm sought CEG’s expertise to overcome its fragmented banking relationships and the challenge of securing financing for growth in multiple countries. The main issue was the difficulty of consolidating banking providers and effectively communicating the company’s financial prospects to banks in order to secure a revolving loan facility.
How did CEG help?
CEG’s strategy involved a phased approach to banking consolidation, maintaining relationships with existing local banks while introducing the firm to larger, global banks. The company designed this approach to highlight its growth plans and financial potential, bridging local and international financing solutions to establish a more cohesive and supportive banking structure.
CEG implemented a standardisation process for financial reporting and internal controls across the company. This involved coordinating the presentation of financial statements, cash flow reports, and compliance with GAAP standards in various countries to ensure clarity and consistency in communications with banking partners. By setting up robust internal controls and processes, CEG demonstrated the company’s financial governance and project management capabilities, thereby strengthening the banks’ confidence in the company’s ability to meet financial covenants.
Where are they now?
The implementation of CEG’s corporate financing strategy resulted in the company securing vital financing from both local and international banks, allowing it to expand into 15 countries. This hybrid banking model facilitated the company’s growth and established partnerships with financial institutions.
The engineering firm now has sufficient liquidity to finance its ongoing and future projects independently, without relying on external investors. This sustainable growth model has positioned the company for future success in the global market.
