Recapitalization Advisory Services
Why Recapitalize
There are many reasons why a company may wish to recapitalize.
A few examples:
Hostile Takeover
Improve company health overall
Keep share price from dropping
Tax Strategy
Dividend Strategy
Please reach out if you would like to learn more about recapitalizing your company.
Equity Recapitalization
Because debt investors require routine payments and a return of principal upon maturity companies may look to swap the debt for equity which intern helps a company maintain its cash and use the cash generated from operations for business purposes, reinvestment, or capital returns to equity holders. Contact us to see if recapitalization makes sense for you.
Debt Recapitalization
A company may choose to issue debt and use the cash to buy back shares or issue dividends, effectively recapitalizing the company by increasing the proportion of debt in the capital structure. Another benefit of taking on more debt is that interest payments are tax-deductible while dividends are not. By paying interest on debt securities, a company can decrease its tax bill and increase the amount of capital returned in total to both debt and equity investors. Contact us to see if dividend recap could be a viable strategy for you.