Most businesses need to raise capital at some point in their life cycle. Whether you're expanding into a new territory, purchasing equipment for your construction company, or looking to bring on a private equity partner to help accelerate your growth, we have the experience and network required to assist in putting together various capital alternatives for you to consider.
While a recapitalization can take many forms and serve many purposes, our clients usually chose a recapitalization transaction over an outright sale of their business because they wish to remain in their position as head of the company. In these situations, a financial partner - generally a private equity group - will purchase a majority of the business, while leaving the original management and branding in place. This allows our clients to monetize a meaningful portion of their equity, while still retaining operational control of their business. The new financial partner may also provide additional growth capital and offers the seller the chance to participate in a second sale or other liquidity event in the future.
PRIVATE EQUITY CAPITAL
The private equity universe is vast and diverse. Each group has a specific set of criteria in evaluating deals and often a unique appetite for certain types of companies. We focus on maintaining and cultivating relationships with various private equity groups that regularly invest in our core sectors. By understanding what private equity groups are searching for and what their investment mentality is, we are better able to represent our clients in a transaction process and advise on the quality of the buyer, their ability to conduct and close the deal, and their history of executing on their growth plans.
SENIOR BANK DEBT & CREDIT LINES
Senior debt is often the ideal option for a company looking to increase capital without diluting ownership. R&Co. can assist clients in identifying the best type of senior debt instruments, preparing the appropriate financial reports and marketing materials, identifying prospective lenders, and negotiating favorable terms.
SUBORDINATED & MEZZANINE DEBT
Some of our clients require capital beyond their senior bank debt and other credit lines. In these instances, we can help raise subordinated and/or mezzanine debt. In the middle-market, the structure and terms of such debt can vary widely and depend greatly on the lender’s confidence in the company’s ability to generate sufficient cash flows. Accordingly, our approach to raising this kind of capital is focused on developing a consistent and precise plan for the use of the funds through the development of a comprehensive financial model. Similar to a sell-side engagement, we remain active throughout the entire transaction process, from the development of marketing materials, the interview of prospective lenders, through the negotiating of financing terms and structures and the coordination of due diligence and closing.
COMMON & PREFERRED EQUITY
All types of equity are not created equal. Differences can include voting and conversion privileges and dividend priorities. Whether you are a buyer or a seller, we will help you understand the differences between the various types and classes of equity utilized in various deal structures.