Case study: simplifying a complex structure

Case study

The brief

Macquarie was approached to review the architecture firm’s complex financial structure. The firm’s directors were uncomfortable that they had their personal property and spouses’ guarantees tied up with their business.

The challenge

Macquarie’s challenge was to untie the personal property from the financial security and find alternative collateral for loans to enable the business to grow.

The Macquarie difference

Experience with similar professional services businesses, including other architecture firms, gave Macquarie a good understanding of the industry that helped when assessing the firm.

Macquarie looked at the firm’s projected cash flow, the forward order book and the work the firm had locked in. Macquarie also assessed the firm’s pitch book and the outlook for upcoming work in different areas.

To help the new client Macquarie needed to: 

  • simplify the firm’s financial structure
  • restructure its funding model.

The outcome

Macquarie put a financial value on the client’s future work and used the projected cash flow as security against the loans. This enabled the client to refinance and recapitalise. It also simplified the financial security structure by removing the directors’ and their families’ personal property as collateral.

The client continues to benefit from the assistance and accessibility of their relationship manager through:

  • regular financial review meetings
  • regular reviews of working capital needs
  • ongoing business feedback.
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The case studies and examples provided on this page are based on actual de-identified client circumstances. They have been included for illustrative purposes only, without taking into account any individual's personal objectives, financial situation or needs.

The information on this page has been prepared by Macquarie Bank Limited ABN 46 008 583 542 (AFSL and Australian Credit Licence 237502) and does not take into account your objectives, financial situation or needs. Before making any financial investment decision or a decision about whether to acquire a financial, credit or lending product, a person should obtain and review the terms and conditions relating to that product and also seek independent financial, legal and taxation advice. All applications are subject to Macquarie’s standard credit approval criteria. This information is intended for recipients in Australia only.