Recapitalization: A Financing Alternative for Middle-Market Companies

The impact of the global recession is raising many issues for your middle-market business clients. The substantial reduction of availability of debt and the weak equity markets make it difficult for many companies to access capital, raising the very real concern as to whether they will have the financial resources to weather this recession.

We would like to introduce you to a financing concept that you might want to consider as you contemplate alternatives for your business clients. A recapitalization is an investment mechanism frequently utilized by companies whereby an institutional private equity fund buys a majority or possibly a minority stake of a company but where the current shareholders maintain operating control and continue to manage the business.  This enables the shareholders to take some money out of the company, diversifying their personal assets, and the new financial partner can provide the resources to help weather the recession and to take advantage of opportunities for growth.

Despite what you may hear in the media, there are numerous good quality capital providers interested in investing in well run businesses. However, if you are not constantly in touch with them and their array of products, it is difficult to know what financing source and structure are best for your clients and their circumstances.

That is why we are writing to introduce you to Barnard/Montague Capital Advisors, a San Francisco Bay Area based investment bank that is comprised of a team of highly experienced and dedicated professionals focused solely on advising and representing middle-market companies in determining their optimum financing alternatives. Once the best solution is identified, we guide company owners/managers through and manage the capital raising process from start to finish with the strategy of creating competition among a carefully selected group of investors. Our services include financial advisory; sourcing capital on behalf of companies; as well as merger, acquisition, divestiture, management and leveraged buy-out and going-private advisory.

To find out more about Barnard Montague please visit our web site at www.barnardmontague.com.

Please contact us if you would like us to work with you and your clients to evaluate their needs and develop the financing strategy to enable them to withstand these difficult times and to best accomplish their objectives.