Capital structure optimization

Capital structure optimization is a comprehensive advisory service focused on designing and implementing an optimal mix of debt, equity, and hybrid instruments to support long-term strategic objectives and enhance enterprise value. It involves in-depth analysis of funding needs, cost of capital, risk profile, and market conditions to determine the most efficient capital structure under various scenarios. The service typically encompasses balance sheet restructuring, refinancing strategies, capital allocation recommendations, and ongoing monitoring to ensure sustained financial flexibility and resilience. Submit a request

Capital Structure as a Strategic Lever on the Danish Market

Capital structure advisory on the Danish market is increasingly perceived not as a one-off financial exercise, but as a strategic governance mechanism that shapes the long-term trajectory of enterprises. Read more.

Case study

Capital Structure Turnaround in Heavy Industry

The story begins with a large industrial manufacturing company facing mounting pressure from lenders, rating agencies, and key customers. For years, the business had fina...More +

Retail Chain Capital Structure Redesign

A nationwide multi-format retail chain had grown rapidly over a decade, opening hundreds of stores across urban and suburban locations. Expansion had been financed opport...More +

Tech Scale-Up Capital Structure Strategy

A rapidly expanding software-as-a-service company had reached a pivotal moment. Revenue was doubling every eighteen months, churn was low, and the product had become a ca...More +

Food Producer Capital Structure Overhaul

A regional food production company, supplying both private-label and branded products to major retailers, had grown steadily over two decades. Its portfolio spanned dairy...More +

What we provide

Capital Diagnostics

We perform a comprehensive diagnostic of the current capital structure, assessing leverage, liquidity, cost of capital, and alignment with the company’s strategic objectives.

Optimal Mix

We design an optimal mix of debt, equity, and hybrid instruments that balances risk, return, and financial flexibility across different market and macroeconomic scenarios.

Cost Reduction

We identify and quantify opportunities to reduce the weighted average cost of capital through refinancing, repricing, and rebalancing of existing funding sources.

Scenario Modeling

We build advanced scenario and sensitivity models to test capital structure resilience under stress cases, regulatory changes, and strategic events such as M&A or divestitures.

Funding Strategy

We develop a forward-looking funding strategy that sequences issuances, maturities, and instruments to support growth plans while managing refinancing and covenant risks.

Market Execution

We support the execution of capital markets transactions by advising on timing, investor targeting, instrument selection, and coordination with banks, rating agencies, and advisors.

Governance Framework

We establish governance, policies, and decision frameworks for capital allocation, leverage targets, and dividend or buyback programs to ensure disciplined financial management.

Ongoing Monitoring

We implement tools and KPIs to continuously monitor capital structure performance and proactively recommend adjustments as market conditions and strategic priorities evolve.

Capital Structure Optimization as a Catalyst for Sustainable Growth

Capital structure optimization, when consciously aligned with sustainability, becomes a powerful lever for steering companies and entire economies toward a low‑carbon, resilient future. Instead of treating financing as a purely technical exercise foc...

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How can we support you?

Capital structure optimization focuses on designing a funding mix that maximizes enterprise value while preserving strategic flexibility and resilience. The service covers analytical diagnostics, target structure design, execution support, and ongoing monitoring to ensure that capital decisions remain aligned with business objectives and market conditions.

Comprehensive capital structure diagnostics

Radner begins by conducting a rigorous assessment of the current capital structure, including debt, equity, hybrids, and off‑balance‑sheet exposures. The analysis benchmarks key leverage, coverage, and liquidity ratios against peers, rating agency thresholds, and investor expectations. Particular attention is paid to maturity profiles, covenant packages, and refinancing risks under different market scenarios. The diagnostic phase also evaluates the cost of capital by instrument, currency, and tenor to identify inefficiencies and hidden constraints. Findings are synthesized into a clear view of structural strengths, vulnerabilities, and value leakage. This creates a fact base that underpins all subsequent optimization decisions.

Design of target capital structure and funding strategy

We work with clients to define an optimal target capital structure that balances value creation, risk tolerance, and strategic ambitions. The design process considers business cyclicality, asset profile, cash‑flow volatility, and potential M&A or divestment plans. Different leverage and liquidity configurations are modeled to understand their impact on cost of capital, credit rating, and shareholder returns. The target structure is translated into a practical funding strategy, specifying preferred instruments, currencies, tenors, and diversification of funding sources. Scenario and sensitivity analyses are used to test resilience under stress conditions and regulatory changes. The outcome is a clear roadmap that links capital structure choices to measurable financial and strategic objectives.

Execution support for refinancing, deleveraging, and capital actions

Radner supports clients in translating the target structure into concrete transactions and capital actions. Typical work includes planning and sequencing of refinancings, new issuances, liability management exercises, and selective deleveraging. Support is provided in evaluating trade‑offs between fixed and floating rates, secured and unsecured debt, and public versus private markets. Coordination with banks, investors, and rating agencies is facilitated to align messaging and optimize terms and conditions. Execution plans are stress‑tested for market volatility, timing risks, and operational constraints. This ensures that implementation of the optimized capital structure is both value‑accretive and operationally feasible.

Ongoing monitoring, governance, and risk management

We help establish governance frameworks that keep capital structure decisions disciplined and forward‑looking. Key performance indicators and early‑warning metrics are defined to monitor leverage, liquidity, and covenant headroom in real time. Regular reviews are designed to reassess the capital structure in light of market shifts, business performance, and strategic moves. Radner supports the integration of capital structure considerations into broader financial policies, including dividend, share buyback, and investment decisions. Risk management tools and limit systems are implemented to control refinancing, interest rate, and currency risks. This continuous oversight enables timely adjustments and preserves the benefits of the optimized capital structure over the long term.

Why choose us?

Local Insight

We combine deep expertise in capital structure optimization with a precise understanding of the Danish regulatory and financing environment. We translate complex local market dynamics into clear, actionable structures that strengthen our clients’ resilience and growth potential.

Data-Driven Design

We build capital structure scenarios on robust, granular data and advanced analytics rather than generic benchmarks. We rigorously test each structure under multiple stress cases, ensuring that our recommendations remain effective across cycles and interest rate regimes.

Execution Focus

We do not stop at strategy design; we support our clients end-to-end, from lender negotiations to implementation and monitoring. We align governance, covenants, and internal KPIs with the optimized structure so that value creation is measurable, transparent, and sustainable.

Contact

Need more information? Contact us.