Debt in France

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April 22, 2024

by a searcher from INSEAD in Paris, France

Looking to hear from Searchfundes with experience with raising debt in France?

We are particularly interested in understanding the lenders landscape, the guarentees that lenders are looking for and the level of debt that one can expect when lending for a buy-out.

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Reply by a searcher
from SKEMA Business School in Paris, France
Hello, There are banks organized at the national level (such as Société Générale, BNP Paribas...) and regional level (such as Groupe BPCE...). It's easier to proceed quickly with regional banks, but the company must be located in the respective region. Regarding the level of possible debt: pending negotiations, up to approximately 70% of the EBITDA repayable over 7 years. For guarantees: the BPI (Public Investment Bank) can guarantee up to 50%, the rest will be a personal guarantee, negotiable to waive. I'm unsure about the accuracy of the last point if the borrower is foreign; it needs verification
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Reply by a searcher
from INSEAD in Paris, France
Depending of the target but generally they allow a leverage of 3.5x EBITDA. personal guarantee is rarely being asked.
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