MARKET ENTRY
Japanese Ltd. Becomes Shareholder of a German GmbH
Business Challenge
A Japanese Ltd. is willing to provide the German GmbH with a financial loan of 10 Mio. Euro through a new incorporated Seychelles company.
Questions to be considered:
- A long-term investment strategy needs to be defined and agreed among all stakeholders.
- How would the right process flow look like to meet the given "time to market" objectives?
- What is the common interest rate in Germany for such loans, with a loan period of 3 years?
- Are the capitalization rules applicable in this case?
- What would the right process flow look like to meet the given "time to market" objectives?
- What if the foreign Ltd. purchases 100% of the shares of the GmbH in future? Will this fact change the situation with the loan?
Our Approach
Consultinghouse provided fundamental consultancy concerning loan and principle capital management of the existing GmbH. By defining an individual M&A strategy the risk of the project could be set to a minimum while the efficiency of the existing company operating in Germany was not negatively affected but even increased over time.
- Monitoring of the shares transfer from the German GmbH to the Seychelles Ltd.
- Recommendation of a loan agreement between the Seychelles Ltd. and the German GmbH
- Providing advisory consultation in business decisions and support with negotiations through the development of the business in Germany
- Offering support on realizing the planned synergies (with a clear focus on the financial impact).
- Preparing a plan of approach for the project in close collaboration with the managements of both companies.
- Drawing up detailed integration plans for individual areas (sales, operations, finance, etc).
- Support in bringing together different cultures.
- Support in communicating the plan to all participating stakeholders.
The Outcome
www.lancogroup.com .The claim of the professional advice of Consultinghouse resulted in a fast and uncomplicated company wind up. Thereby further risks along the insolvency proceedings could be eliminated. The great advantage by claiming the service of Consultinghouse, was a quick market exit, so that further expenses and resources could be saved and invested in other strategic projects of the company. In addition, in taking advantage of the market exit framework of Consultinghouse, a straightforward procedure was given, so the company did not need to take care of the market exit process and was able to focus on his core business and future targets.
For more information about Lanco, please visit www.lancogroup.com .
Services
Service Provided
Business services
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WHY US?
- Strong experience in supporting foreign companies to develop their business in Germany
- Our clients success is our success. Our objective is to grow along our clients
- We are family owned. Our long- term perspective allows for good strategy and decision-making
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