In principle, the instruments mentioned above are effective and recommendable. In addition, however, there are other approaches that are often used by corporate groups:
In the case of securing liquidity through cash pooling, the group parent company takes care of financial management. This involves a balancing process between the individual companies in a group: surplus liquid funds are withdrawn, and in the event of a shortage, loans are granted in the opposite direction (at standard market interest rates). Only when the Group's internal funds are insufficient are external funds called in. In the case of cash pooling, a distinction is made between a genuine and a non-genuine variant:
- Genuine cash pooling: funds are actually transferred back and forth.
- Non-genuine cash pooling (also: notional pooling): the account balances are only fictitiously compared and the interest is calculated on the main account.
In Germany, this practical solution to cash flow issues is legal and quite common, but the rules are not even comparable within Europe and can differ greatly.
Private equity refers to temporary capital for unlisted companies. Here, too, there are various common forms:
- Management Buy Out
- Leveraged buy out - leveraged acquisition
- Private equity companies
- Private equity funds
Spin-off involves the sale of parts of a company in which 100% of the respective division is sold. In such a case, shareholders are compensated accordingly through shares.
This form of securing liquidity is suitable, for example, if an innovative product or service has been developed that has good market prospects but does not fit one hundred percent with the parent company.
In an equity carve-out, only one part of a company is sold. This is usually less than 50% in order to retain decision-making power over the part of the company. The group thus retains control over the spun-off company, but can collect the proceeds from the sale.