alternative business financing for SMEs Gottingen, March 14, 2008 fashion group Hugo Boss must borrow for a special dividend to the financial investor Permira. However, opens medium-sized companies increasingly to outside investors, to develop new means of financing. You carefully choosing their financing partners and increase their financial strength, their equity and their credit rating with an equity financing sustainable. External investors mean at the same time opportunities and risks for the German middle class. The latter are carried out currently at the Hugo Boss fashion group, taken over by the financial investor Permira. Since here the investment through a special distribution of additional 350 million these days apart from a handsome increase in the dividend.
\”\” But who now compared to private-equity firms \”locusts\”, draws a undifferentiated image of institutional financial investors, because private equity for themselves is not good \”still bad\”. Certainly, there are Private-equity companies, whose business practices are reminiscent of the behavior of locusts\”, says lawyer Bjorn Katzorke by law firm Gundel & Reddy Kadiri from Gottingen. A takeover by corporate buyers a bleeding rates threatens sometimes\”. There follow mostly restructuring with the aim to observe a short-term increase in value and special distributions such as Hugo Boss. In such a transaction, the capital of financial investors lands exclusively or predominantly at the shareholders. Often even no fresh liquidity flows in such transactions the company itself\”, so the legal adviser who advises private-equity companies and medium-sized enterprises.
Private equity however used for financing purposes, and not only to the acquisition of the company, allows the company long-term investments in the future to safeguard the competitive position and to expand into new markets. Private equity is not a certain form of financing, still limited to a special investors\”, who co-authored explains appeared one Bank published reference book on the subject. It means providing over-the-counter equity capital for companies by standing outside the existing circle of shareholders third parties generally\”.