Services / Recapitalizations

Recapitalization

In some situations, recapitalization of the target company may be preferred by private owners as an alternative to an M&A transaction. Typically recapitalization serves as a tool to cash out majority of the shareholder value by all shareholders while securing independency of the target company. In other situations, recapitalization is used when some owners of the target company wish to grow its business further whereas other shareholders prefer exit at fair market conditions.

Typical scope of our services

  • assessment of optimal capital structure, available debt capacity and potential cash proceeds for the owners
  • assistance with preparation of documents required by financing banks
  • assistance in negotiations with banks
  • organization of due diligence
  • assistance with structuring, negotiations of transaction documents and closing

Our typical clients

  • family businesses
  • groups of individual owners
  • private investors considering exit from a company
  • foreign corporations having a subsidiary in the Czech Republic and seeking assistance with optimization of their consolidated capital structure

Testimonials

"Mr. Mareš addressed us as a representative of one of the largest investment banks in the CEE region and advisor to one of the Western European leaders in our sector, Swedish listed company NIBE Industrier AB, which was looking for growth opportunities in the CEE region. Finally all shareholders decided to initiate competitive auction process, in which the investor represented by the team led by Mr. Mareš won. We valued directness of negotiations and respect to jointly agreed procedures."

Luděk Semerád,
shareholder and CEO, Družstevní závody Dražice-strojírna s.r.o.*

Ladislav Beran,
shareholder and production director, Družstevní závody Dražice-strojírna s.r.o, the largest producers of water heaters in the Czech Republic*

*The stated ownership and managerial positions correspond to the situation before the transaction closing and thus might not correspond to the current situation.