For much of the last decade, cheap debt made capital structure decisions relatively forgiving. That's no longer the case, and businesses that haven't revisited their funding mix are carrying more risk than they realise.
The businesses navigating this best are treating capital structure as a live decision rather than a one-time setup: revisiting facility terms, covenant headroom, and refinancing timelines on a regular cycle rather than only when a maturity wall forces the conversation.
Equity is not automatically the answer either. In several recent mandates, the right move was renegotiating existing facilities and extending runway rather than diluting ahead of a stronger valuation window.
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