Contacts

With us you can fly

really high
Ivan Meloun

Dalibor Jebek

Director
Phone: +420 224 114 393
Fax:
+420 224 119 585
E-mail: imeloun@csob.cz

Senior Manager
Phone: +420 224 114 391
Fax:
+420 224 119 585
E-mail: djerabek@csob.cz

Mariana Sabolov

Ji Chaloupka

Senior Manager
Phone: +420 224 114389
Fax:
+420224119585
E-mail: msabolova@csob.cz

Senior Manager
Phone: +420 224 114446
Fax:
+420224119585
E-mail: jchaloupka@csob.cz

Acquisition financing
Are you flying high? Are you expanding? Are you looking for a strong reliable partner
- the one with a strong financial capacity and profound experience in the field of
acquisition financing? SOB provides complex, tailor-made services for the financing
of acquisition projects. Our highly experienced team is at hand to offer you the perfect
package to take your business sky-high.

www.csob.cz
Member of the KBC group

Corporate and Institutional Banking

www.csob.cz
Member of the KBC group

Corporate and Institutional Banking

What is acquisition financing?

Examples of important transactions

from the SOB LBO portfolio

It is external debt financing of the buyout of a company by another company.

In essence there are two types of acquisition financing:
- the Special Purpose Vehicle (SPV) structure, known as Leveraged Buyout (LBO),
- direct acquisition of a company by another company, known as Mergers
and Acquisitions (M&A).
Though both of these are available, LBO financing is more common as it provides broader
structuring possibilities, thereby allowing you to utilize your funds to maximum effect.
SOB provides services for both types of acquisition financing.

Examples of important transactions

from the SOB LBO portfolio

LBO financing relieves you of the burden of having to use your own valuable resources for
2009

2009

Pivovary
Staropramen
Acquisition Financing

What is LBO financing?

Essentially, LBO financing is the financing of an acquisition transaction with a substantial
portion of borrowed funds (leverage).
LBO usually uses a SPV structure, i.e. the establishment of a new company (SPV)
that becomes the acquisition financing bearer.

What are the advantages of LBO financing?

NOWACO
Czech Republic

Financing related to
Acquisition

Mandated Arranger

Coordinator, Mandated Lead

Arranger, Agent

2009

2009

a new acquisition. This method provides you with the freedom to retain and use your
resources constructively in other areas of your business.
LBO offers a tax shield for the interest on granted loans.
LBO financing is granted at the new companys risk. This means the repayments funds are
generated by the acquired company. It does not affect the buyers activities or increase
his debt burden.
Such a financial package optimizes the transactions financial structure with regard
to expenses, time and flexibility of loan utilization and repayment.
Management buyout transactions (MBO) enable capable managers to become
entrepreneurs and to participate in the expansion of the company without overstretching
their own financial resources.
An important amendment to the Commercial Code became effective in July of 2009.
This amendment breaks the complete prohibition of financial assistance in the acquisition
of an interest in the company which would provide the financial assistance

2008

2007

GTS CEH

OTHERM and VEKRA

Syndicated Term
Loan Arranger

Acquisition Financing
Mandated Lead Arranger,
Agent

2007

2007

Strojrny Poldi

Towercom

Financing related
to Acquisition

Acquisition Financing

Mandated Lead Arranger

Mandated Lead Arranger

2007

2007

net4net

CADENCE
INNOVATION

Acquisition Financing

Financing related
to Acquisition

Mandated Lead Arranger

Mandated Lead Arranger

2007

2006

GUMOTEX

CCS

Acquisition Financing

Acquisition Financing
Lender

What are the pitfalls of LBO financing?

It requires more set-up time, hence the necessity of early preparation. It has highly

Basic structure scheme

Ham

ED / E

Financing related
to Acquisition

Acquisition Financing
Operational Financing

Mandated Lead Arranger,

Agent

Mandated Lead Arranger,

Agent

2009

2008

BUYER

recommended external advisors and the banks participation commences at the preparatory
phase. This careful planning in the early stages saves time and money that would otherwise
be wasted on the adjustments to the structure made during the course of the transaction.

What does SOB offer?

SOB has been operating in the acquisition financing market since 2001. Its current portfolio
of acquisition transactions amounts to approximately EUR 600 million.

SOB offers both LBO and M&A acquisition financing services.

SOB provides a thorough and complete services. This includes a precise evaluation
Ownership

Acquisition load of
up to 70 % of the price

SPV

BANK

ENV Holding / EGEM

Prask energetika

Acquisition Financing
Operational Financing

Acquisition Term
Loan II.

Mandated Lead Arranger,

Agent

Mandated Arranger,
Facility Agent

2008

2008

Ownership

TARGET COMPANY

www.csob.cz

Operation credit

TOS Varnsdorf

APOLLO zdravotn
poisova

Financing related
to Acquisition

Financing related
to Acquisition

Mandated Lead Arranger,

Agent

Mandated Lead Arranger,

Agent

of the transaction structure, with the structuring and securing of the transactions
external financing.
SOB is a member of the KBC group with acquisition teams available at five
Western European and four Central and Eastern European locations.
Through other KBC group members, such as Patria or KBC Private Equity, SOB
is able to offer complex made-to-measure services. These consist of the arrangement
of the overall financing of acquisition transactions (known as one-stop shop) including
equity investments and subordinate debts.
SOB adheres to the international LMA standards regarding the financing
of acquisition transactions.
As a universal commercial bank, SOB is able to offer a full spectrum of banking services
to its clients even after the transaction has been realized.

SOB is keen to offer the services of its Acquisition Finance team to its clients.
This professional body has achieved a leading prestigious position in the Czech acquisition
financing market. SOB Acquisition Finance team has extensive experience in the
(frequent) successful realization of LBO transactions. In 2009 and 2008, SOB achieved
a prestigious award of British economic magazine ACQ Finance Magazine - ACQs
Czech Republic Bank of the Year and such confirmed its leadership position
in the Czech acquisition financing market.

Arranger

Corporate and Institutional Banking