Olifan Group Holding

Presentation of the company

Olifan Group Holding  is the holding company set up in 2014 that will acquire Axios group active in the insurance and wealth management sector. The Olifan group, managed by Heins Donders will have 100 employees and is based in Clairoix.

The company’s main activities are:

• Wealth and insurance management.
• Protection of private and personnal individuals.

The company works with 10 000 individuals and private clients.

Project Description

Axios Group wants to sell his activity valued under the standard of the Market. Olifan Group via its Holding company wishes to borrow 2 100 000 € over 84 months to finance the acquisition of the company. The remaining will be financed through long term debt and share exchanges. This project will be realised in the next few months.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.

The amount offered on the platform is limited to 1 000 000€, which is in line with the regulatory limits.

Analyst’s Opinion

The borrower is a holding company whose revenues are derived from services invoiced to its subsidiaries. The financial analysis was carried out on consolidated financial statements of Olifan and Axios, which reflect the groups’ performance.

With a turnover of 7 529 300 € in 2017 and an experienced team, the group has a good track record combined with a strong operating margin. The intermediate combined 2018 financial statements are not yet released but show a increase in turnover and profitability.

The increasing profitability is linked to the optimisation of process and economies of scale linked to the integration of multiple offices The forecast is based on the combined performance of both companies.

The group has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,23 and a strong financial structure, with a forecast net debt / ebitda ratio of 3,3 and a net debt / shareholder equity of 27% taking into account both companies’ equity level.

The analysis of the project leads to a credit rating of B and a 6,95% annual interest rate.

*The multiple of FCCR at 1,23 means that the company has a safety margin of 23% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points:

• Good historical performance based on diversified client base.
• Correct repayment ability with a forecasted FCCR of 1,23.
• Creation of a key player in the wealth management sector.

Point of caution:

• Integration risk.