Fundraising

Capital Structure Analysis: Leverage is an important factor when considering restructurings. Leverage can be increased to defend against takeovers, pay out special dividends, repurchase shares, or optimize capital structures. During a divestiture transaction, leverage of the parent company and the intended divestiture target needs to be considered.

Follow-on Financing: Follow-on financing is a subsequent private equity fund established after the investment period of a prior fund.

Friends and Family Round: A friends and family round occurs at the start up of a new company. Often the first place they look for seed financing is from friends and family.

Recapitalization: Recapitalization requires that the private company take on additional debt or reduce their equity by repurchasing shares. Recapitalizations are usually done to alter the ownership of the private company. The main goal of initiating a recapitalization is to keep the private company’s capital structure more stable and, in some cases, boost the stock prices of private companies. Recapitalizations are also done by cash-rich public companies that are threatened by a takeover.