Schwartz Heslin Group, Inc.
TRUSTED BUSINESS ADVISORS SINCE 1985
Case Studies
We seek to provide our clients with objective, independent advice to help them achieve their most difficult challenges.

Case Studies


Debt Recapitalization Advisory

Overview                                                                                            

Highly successful, 2nd Generation family-owned business decides to explore a RECAPITALIZATION as a way to provide personal wealth diversification and increased investment in new business opportunities.The company specializes in application software serving over 10,000 clients both domestically and internationally across a variety of industries.

 

Situation – “Dividend Recapitalization & Growth Capital”         

The company has traditionally avoided financial leverage and had little to no debt when Schwartz Heslin Group started its process. The company wished to secure financing to:

 1.       Secure Growth Prospects

  • Build and develop a pipeline for early adopters.
  • Secure competitive positioning for global expansion and scalability.
  • Maintain access to capital for regional and/or strategic acquisitions to accelerate growth.

2.      Meet Shareholder needs

  • Allow for increased shareholder investment in new business opportunities.
  • Provide personal wealth diversification for shareholders.
  • Meet the liquidity needs of a 3rd generation family ownership transition.

 

The SHG PROCESS

  • Worked with management to determine key qualifications and parameters of a capital raise.
  • SHG met with major banks and made sure the company’s non-negotiable needs were clearly presented.
  • SHG made sure lenders understood the solidity of the business’s growth and secure earnings future.
  • We solicited and confirmed interest, reviewed term sheets, commitment letters and performed negotiations on behalf of the company.
  • We ensured shareholders knew the possible costs of removing covenants and guarantees and moving outside the conventional term loan format.

 

Results                                                                                                                      

Together we helped create a scenario where the chosen syndicate of lenders gave our client the flexibility and freedom from certain covenants and pledges that typically come with private lending at high rates with a package of conventional bank rates. SHG continues to work with the client in an advisory capacity.