Leveraged Recapitalization

A leveraged recapitalization is when a company issues debt obligations to finance corporate expansions, declare an extraordinary dividend, or redeem certain outstanding shares, amongst other uses.   This financing structure  allows for current shareholders to retain equity ownership allowing for participation in the company's future upside potential, and provides for additional tax shelter.

We would develop a financial model that reflects the outcome of management's long-term strategic plan and vision by analyzing the capital structure with respect to the financial model and determine a preliminary range of debt the business can support.  Once this analysis is completed, we would make a recommendation to management for its consideration, and assist the company in arranging the financing.