Recapitalization

Recapitalization can be an attractive strategy for a private business owner who would like to continue to operate their business and participate in the future growth of the business but yet would like to reduce their risk exposure as well as diversify their assets. GEC can provide a systematic process to help our clients evaluate their strategic options and help them to create a capital structure and course of action that best fits their objectives.

The recapitalization process creates a partnership that can also bring non-financial benefits such as additional management expertise and other possible synergies. One of the keys to success of this type of partnership is, of course, finding a partner that is a great cultural fit for the business. We put our extensive knowledge of the private equity community to work to help our clients find the right investor who will be that value-added partner who will further enhance the success of the business going forward.

The following is the basic process for creating a recapitalization but of course each transaction is unique so we adapt the process as necessary to achieve our clients objectives:

• Gain an understanding of the business’ financial and operating history, value drivers and business outlook.
• Help our client determine the optimal capital structure to achieve their objectives.
• Work with our client and other advisors to develop a strategy to achieve the transaction objectives including identification of prospective investors.
• Work with our client to develop the offering memorandum and an effective management presentation.
• Confidentially market the opportunity to a select group of private equity firms.
• Work with our client to evaluate the expressions of interest for the purpose of inviting a limited number of prospective investors to meet with management and conduct due diligence.
• Facilitate an efficient and minimally invasive due diligence process.
• Manage the negotiation process to a successful close.