Askew Kabala & Company’s institutional financial services include but are not limited to private company equity placement (early stage and growth capital), recapitalization, and debt formation. Specific financing to meet the needs of a business enterprise may include:
Askew Kabala maintains contact with current funding sources at institutional funds for placement of equity, mezzanine/subordinated debt and senior debt. Capital provides liquidity to fund the needs of a company from its initial formation to supporting growth and acquisitions. We will assemble a team and work with you to define the right capital sources, assist in the preparation of the presentation of your value proposition, confidentially contact the appropriate institutional investors and assist in a satisfactory funding arrangement.
Equity Capital can be an excellent source of funds for a business to support internal growth, complete an acquisition, recapitalize, buy-out of ownership interest and fund research and development. We work closely with Venture Capital, Institutional Private Equity Funds and Family Offices to maintain a meaningful relationship with the Funds’ partners to ensure access when presenting a viable capital transaction.
Subordinated or mezzanine debt is a useful tool in corporate finance because it can be negotiated and structured to precisely meet the financial requirements of a company. This market is very sophisticated and the loan structuring opportunities are varied to meet the unique criteria of the borrower. The capital offered by mezzanine or subordinated lenders is useful for a company that has sufficient and projected verifiable cash flow to service more debt, but has already borrowed beyond the comfort level of the bank. It can be a useful tool to obtain liquidity into an expanding company requiring capital, but desiring to minimize shareholder dilution as opposed to obtaining equity capital.
Askew Kabala’s credit finance knowledge encompasses the services and banking relationships that may provide a company with new or restructured credit facilities to increase borrowing capacity, reduce debt costs, provide for equipment and property financing, and remove burdened loan covenants to fund strategic objectives of the company.
The need for financial restructuring could be brought about because of tightening bank credit, insufficient capital base, major management changes, recent financial reverses in a company’s projections or a desire to meet certain funding requirements. To meet the needs of the company, we will review the current financial plan, make recommendations, prepare the financing memorandum, approach the financial marketplace and negotiate acceptable terms and conditions.
Mergers, Acquisitions and Divestitures
Askew Kabala has the knowledge and experience to manage a business sale or the acquisition of private companies. Our primary objective is to obtain the maximum value in the completion of a transaction. You as our client control the process; we cannot commit your company to any sale or acquisition. We act as trusted advisor to our clients and execute the process with your authority. Our service provides for the following steps:
- Business valuation and assessment of current conditions
- Develop a focused and complete market strategy
- Prepare a Sale Descriptive Memorandum with emphasis on ‘value drivers’ that will drive the strategic value
- Prepare a list of potential buyer or acquisition targets
- Solicitation of offers
- Negotiation of Letters of Intent
- Advise through the due diligence process
- Provide closing assistance
Intermediary Advisory and Consulting
AKC works with private company management teams and ownership groups to develop strategic business plans that enhance the long-term value of their organizations. Advisory on a fractional or temporary basis across all C-Level functions can be an extremely cost-effective way for smaller companies to get the expertise and guidance they need without having to commit to the cost of full-time employees. We provide independent objectivity to the strategic planning process, producing recommendations that may not always be apparent to the owners and managers of closely held businesses. The scope of our business advisory services includes:
- Corporate formation activities
- Development of both short and long-term business plans
- Pro forma business models and financial strategy
- Position Company for institutional capital raise
- Identify and align with strategic business partners
- Position Company for a sale, merger or acquisition
- Comprehensive research and preparation of growth strategies
- Transformation and/or implementation of leadership changes
- Provide recapitalization and/or debt restructuring recommendations
- Preparation of due diligence packages
- Identifying qualified board of directors candidates
- Creation of value-added advisory committees
- Crisis management services