Option analysis for investors
At a glance
Initial Situation
Several realistic options are on the table—operational, financial, or structural solutions. With time pressure and diverging stakeholder interests, a neutral, reliable basis for comparison is needed.
Our Approach
We develop comprehensive alternative courses of action, simulate their impact on liquidity, capital structure, seniority, and recovery rates, and assess feasibility and risks.
Your Benefit
- Objective comparison of options
- Visible trade-offs, downside risks, and upside potential
- Documentation that supports credit and investment decisions
iN Detail
Initial Situation
Options analyses are particularly useful when capital providers see multiple realistic paths for an engagement – ranging from operational turnaround scenarios and financing or structural measures to formal proceedings. Under time pressure and with heterogeneous stakeholder interests, a transparent comparison of the available alternatives is essential.
What is an option analysis?
An option analysis systematically explores the scope for action from the perspective of creditors and investors. It develops robust alternatives, assesses effects on liquidity, capital structure, rankings, and recovery rates, and calculates scenarios. The result is a clear, comparable basis for decision-making for each option.
Objective, Significance, and Purpose of an Option Analysis
The aim of option analysis is to select the route that is most optimal for investors. It makes trade-offs, downside risks, and upside potential transparent, reduces default risks, and strengthens the documentation of credit or investment decisions. This allows negotiations to be conducted more quickly and on a fact-based basis.
Support from Horn & Company
Horn & Company models options end-to-end, quantifies recovery and value effects, and assesses feasibility and stakeholder acceptance. We moderate the selection process on the part of investors and provide consistent decision-making and negotiation logic that holds up even in complex situations.
