Tag: Financial Discipline
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By Martin Wolfram Steininger For more than a decade, global markets lived in an unusual environment. Capital was abundant.Interest rates were near zero.Liquidity flooded financial markets. In that world, many business models worked. Not because they were fundamentally strong — but because capital was artificially cheap. That era is now over. And many companies are…
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EBITDA is the most comfortable number in corporate finance. It looks clean.It looks strong.It looks scalable. It also hides reality. Because EBITDA does not pay interest. Cash does. EBITDA does not repay principal. Cash does. EBITDA does not survive refinancing. Cash does. In volatile markets, EBITDA becomes what it often was all along: A comfort…
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Most companies treat refinancing like administration. A maturity date approaches.A bank process starts.A few term sheets come in.The cheapest one wins. Done. This mindset is not only outdated. It is dangerous. Refinancing is not a transaction.Refinancing is a verdict. The market is not “tight.” Your structure is. In easy markets, almost everything refinances. Weak balance…
