Case Study n°5

Capital Restructuring and strategic advice

The Challenge

  • French textile company (Revenues: EUR 30 million, EBITDA: EUR 3.2 million) under an O.B.O. opearation with a financial investor in 2005.
  • The desire of the manager/shareholder to take back the majority of ownership while optimally refinancing the assets of the group.

The Mission

  • Feasibility study (business plan and structuring).
  • Coordination and negotiation with original main financial investor.
  • Refinancing of the senior bank debt.
  • Secured bank funding for day to day operations.

The Results

  • A complete refinancing project, structured and completed in 4 months:
    • A re-allocation of capital allowing the manager/shareholder to take back the entitled majority with more than 60% of the principal capital, a management that sees their performance rewarded with a closer tie-in to the capital and a satisfied investor that maintains a significant participation.
    • A cash out for the manager/shareholder higher than 60% compared to his objective.
    • Secured bank funding for day to day opearations, providing development leverage for the group's activities over the next four years.
  • Continued advice and assistance to each management team member involved in the project.
  • Ongoing collaboration was requested by the manager/shareholder to advise and assist him with the strategic and financial development of his group.
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