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Securitisation

Whole Business Securitisation

By 17 February 2025March 10th, 2025No Comments

Unlocking Liquidity and Growth for Corporates

 

Introduction

In today’s financial landscape, businesses are increasingly seeking innovative ways to unlock liquidity and optimise their capital structure. Whole Business Securitisation (WBS) has emerged as a powerful tool for companies with strong, cash-generating assets to raise capital efficiently while maintaining operational control. At Montbards Capital, we specialise in structuring WBS solutions tailored to businesses seeking to monetise stable revenue streams and enhance financial flexibility.

 

What is Whole Business Securitisation (WBS)?

Whole Business Securitisation (WBS) is a structured finance technique where a company raises capital by issuing bonds backed by the cash flows from its entire business or a significant part of it. Unlike traditional asset-backed securitisation, which relies on specific receivables such as mortgages or auto loans, WBS allows businesses to leverage the strength of their operating cash flows.

 

How WBS Works

 

    1. Identification of Cash-Generating Assets: A company identifies revenue-generating assets such as franchise fees, intellectual property (IP), licensing agreements, or customer contracts that produce stable and predictable cash flows.
    2. Creation of a Special Purpose Vehicle (SPV): An SPV is established to issue bonds secured by these cash flows.
    3. Issuance of Investment-Grade Bonds: The SPV raises capital from investors by issuing investment-grade, asset-backed securities, offering an attractive risk-adjusted return.
    4. Ongoing Revenue Collection & Debt Service: The business continues operating as usual, with a portion of its revenue flowing through the SPV to service the issued bonds.
    5. Enhanced Liquidity & Growth Potential: The company accesses capital without relinquishing equity ownership, allowing for reinvestment into expansion, acquisitions, or debt restructuring.

 

 

Benefits of WBS for Businesses

 

    • Enhanced Liquidity: Unlocks trapped value from existing cash-generating assets.
    • Lower Cost of Capital: Investment-grade WBS bonds can offer lower interest rates than traditional corporate debt.
    • Retained Ownership & Control: Unlike private equity or direct asset sales, WBS allows businesses to raise capital without diluting ownership.
    • Long-Term Stability: Structured repayments provide a predictable funding structure aligned with business performance.
    • Attractive to Investors: Institutional investors favour WBS due to its stable revenue backing, credit enhancements, and structured risk allocation.

 

 

Ideal Candidates for WBS

Whole Business Securitisation is particularly effective for businesses with stable, contract-based revenue streams. Industries that commonly benefit include:

 

    • Franchises & Hospitality (e.g., restaurant chains, hotel groups)
    • Intellectual Property & Licensing (e.g., media, entertainment, royalties, brand portfolios)
    • Aviation & Infrastructure (e.g., airport concessions, transport assets)
    • Luxury & High-Value Asset Holders (e.g., private equity-backed businesses with tangible and intangible luxury assets)

 

 

Why Montbards Capital?

At Montbards Capital, we specialise in structuring WBS transactions that align with corporate objectives, investor demand, and regulatory requirements. Our approach ensures:

 

    • Tailored financial engineering that maximises asset liquidity
    • Access to global capital markets for optimal investor placement
    • Comprehensive risk analysis to enhance credit ratings
    • Seamless execution backed by expert securitisation structuring

 

If your business is sitting on valuable assets with strong revenue potential, Whole Business Securitisation could be the key to unlocking significant financial flexibility. Contact Montbards Capital today to explore how we can help you structure a WBS solution that works for your corporate growth ambitions.