Investment Banking Process

Company Sale

The sale of the assets or stock of a company to a third party in consideration for cash, stock, assumed liabilities, and other fixed and contingent compensation

Mergers and Acquisitions

The combination of two companies into a single entity in consideration for cash, stock, assumed liabilities, and other fixed and contingent compensation

Recapitalization

(see the recapitalization chart)

The sale of less than 100% of a company (typically 30 – 90%), usually in conjunction with the injection of some amount of growth capital into the company. The shareholders' proceeds from a Recapitalization usually come from the investment of new private equity or debt into the company. Recapitalization is a solution for shareholder liquidity, family succession, and management buy outs. The benefit to owners include upfront liquidity, risk reduction, elimination of personal debt guarantees, capital for growth, retention of a meaningful equity stake in the company, continued ability to lead the company, and the potential for a second liquidity event in the future at a presumed higher valuation.

Private Placement

(see the private placement table)

Raising capital in the form of debt or equity for closely held companies generally for purposes of growth or refinancing. Forms of capital include common equity, preferred equity, debt with warrants, mezzanine debt, second lien loans, asset based lending, cash flow loans, stretch loans, and senior secured loans.

Management Buy Outs

Raising capital in the form of debt and equity to allow existing management teams to acquire the company from existing owners.

Buy Side Advisory

The search for acquisition targets to expand geographical footprint, add product lines, achieve scale, or create synergies.