A succession and/or exit strategy doesn't necessarily constitute a complete sale of your company. Quite often, our clients wish to play a meaningful role in their business, while benefitting from a liquidity event. In these circumstances, a recapitalization may be the best strategy. By bringing on an investor who provides benefits beyond capital—such as operational expertise, sales and marketing knowledge, or industry contacts—you can also use a recapitalization to grow your business. Our proprietary investor database contains over 8,000 private equity contacts and over 1,000 independent investors who could bring different capabilities to your company.

Using our investor database and other deal resources, our multidisciplinary team of experts will implement an established five-step process to create a competitive market and maximize value in your recapitalization:

Step 1: Business Valuation

The business valuation process involves a comprehensive review of the operational and financial performance of your company. We assess your company's strengths, opportunities, and acquisition potential; we also identify obstacles that could impede a smooth and successful sale. Because our team has both firsthand M&A experience and valuation expertise, we produce highly accurate opinions of value for each of our client companies. In the process, we gain intimate company knowledge that is vital in developing the right strategy for your recapitalization.

Step 2: Strategic Planning

During the strategic planning phase, we determine how we can use our deal management resources to your greatest advantage. Drawing on the knowledge we've gained through the business valuation process, we establish a marketing strategy, outline the timing of key events, and determine how best to present the unique characteristics of your company. We also conduct independent research and mine our proprietary database of over 8,000 private equity investors to compile a comprehensive investor list.

Step 3: Confidential Marketing

We create a competitive market for your recapitalization by customizing our sales and marketing process to your specific goals, and we maintain your desired level of confidentiality throughout this process. We develop a variety of marketing materials—including a confidential profile, a confidential information memorandum (CIM), and a personalized marketing video—to ensure that your company is presented to prospective buyers in the most effective manner. Our marketing materials meet the highest standards of financial accuracy, marketing insight, and professional presentation. They are truly unparalleled in our market, affording our clients more strategic options and us a higher success rate.

Step 4: Deal Making

We developed ClearDeal, a proprietary web-based tool, to efficiently manage correspondence, track investor activity, and provide you with 24/7 access to the status of your company's recapitalization. We use our deal management platform to respond to information requests regarding your company, process confidentiality agreements, track subsequent correspondence, and rank investors in terms of strategic fit and chemistry, among other categories. Once we've identified the best investors, we coordinate management presentations and solicit bids in the form of a Letter of Intent (LOI). Our finance and tax experts evaluate the technical components of each investor's bid, and our experienced deal team then negotiates the terms of the offers until they meet your strategic goals.

Step 5: Due Diligence & Closing

Once we have negotiated a signed LOI with the selected investors, we manage the due diligence process on your behalf. During due diligence your business undergoes intense scrutiny as the investors carefully review your company's operations and financials. Our due diligence experts oversee the data collection process and work with you to fulfill information requests made by the investors. Our deal team works with your other advisors, such as your attorney and accountant, to properly structure your transaction, negotiate a final purchase agreement, and address issues presented by the investors during the due diligence process. Once due diligence is complete, our team organizes all the closing documents and arranges the transaction closing.