- BDO Capital Advisors, LLC Announces the Investment in Mystic Logistics, Inc. by Main Street Capital Corporation (NYSE:MAIN)
- BDO Capital Advisors, LLC Announces the Sale of Truetech, Inc. and Innotech Products, Ltd. to Luxfer Holdings PLC (NYSE:LXFR)
- BDO Capital Advisors, LLC Announces the Sale of Accumetric, LLC to Soudal Holding NV
- BDO Capital Newsletter – Q3 2014 Specialty Chemicals M&A Review and Outlook
- BDO International Limited Q3 2014 Global Mid-Market M&A Horizons Report
- BDO Capital Newsletter – Q3 2014 Manufacturing & Distribution Transaction Review and Outlook
- BDO Capital Advisors, LLC Announces the Sale of MWS Precision Wire Industries, Inc. to Elektrisola Incorporated
- BDO Capital Advisors, LLC Announces the Sale of ElecComm Power Services, Inc. to Sunbelt Rentals, Inc.
- Dan Shea contributed the article "Good Deals Still Hard to Come By, But Pickup Seen in Coming Months" to the July/August issue of ACG Global's Middle Market Growth magazine. Click here to read the article.
- BDO Capital Newsletter – Q2 2014 Manufacturing & Distribution Transaction Review and Outlook
- BDO Capital Newsletter – Q1 2014 Manufacturing & Distribution Transaction Review and Outlook
- Dan Shea gave a presentation at the MIT Enterprise Forum in San Diego called Surviving The Private Equity Shark Tank. Click here to view the presentation.
- BDO Capital Newsletter - Q3 2013 Technology Review and Outlook
- Dan Shea contributed the article "The State of the Capital Markets: The Calm before a Surge?" to ACG's Middle Market Growth publication. Click here to read the article at www.acg.org.
- Bill Shiry Joins BDO Capital Advisors, LLC as Managing Director to head Chicago office
- BDO Capital Advisors, LLC Completes Capital Raise and ESOP Formation Advisory for Storage Solutions, Inc.
- BDO Capital Advisors, LLC Announces the Sale of Segway Inc. to Summit Strategic Investments, LLC
- BDO Capital Newsletter - Q1 2013 Healthcare Information Technology Review and Outlook
- BDO Capital Advisors, LLC Announces the Recapitalization of Diamond Packaging Holdings, LLC
- BDO Capital Advisors, LLC Announces the Partnership of SSAD with Century Capital
- BDO Capital Newsletter from Bob Snape – Blocking and Tackling: The Current State of Middle Market M&A
- BDO Tech Newsletter - Fall 2012: Valentina Midura provides an update of M&A activity in the Software Industry
- Dan Shea Appointed Head of New Private Equity Initiative for BDO Capital Advisors, LLC and BDO USA, LLP
- BDO Capital Advisors, LLC Announces the Sale of INNCOM International, Inc. to Honeywell International Inc. (NYSE: HON)
- BDO Capital Advisors, LLC Announces the Sale of Geocel Holdings Corporation to The Sherwin-Williams Company (NYSE: SHW)
- BDO Capital Industrial Markets Sector - Q2 2012 Transaction Review and Outlook
- Bob Snape named President of BDO Capital Advisors, LLC
- In Memoriam: Kenneth A. Csaplar
- BDO Capital Industrial Markets Sector - Q1 2012 Transaction Review and Outlook
- BDO Capital M&A Newsletter - December 2011 Update
- BDO Capital Advises Morrison Supply Company on Investment by Advent International
- BDO Capital Advisors, LLC Announces the Sale of Chemguard, Inc. to Tyco International Ltd.
- BDO Capital Advisors, LLC Announces a Transaction Closing between Neptune-Benson, Inc. and Audax Group
- BDO Capital Advisors, LLC Secures Revolving Credit Facility for U.S. Auto Sales, Inc. and U.S. Auto Finance, Inc.
- BDO Capital Advisors, LLC Completes Capital Raise for Leader Distribution Systems, Inc.
- Ken Csaplar and Jerry Dentinger penned an article entitled "M&A in the Middle Market: The Road to Recovery--But Not For All" which was published as the featured story in M&A Chicago’s e-publication on April 12. The full article is available here
- BDO Capital Tech Newsletter – Q1 2011
- Bob Snape was quoted in the article "5 Ways to Prepare Your Business for Sale Now" that was published on March 3 by AxialMarket and featured on Business Insider. The article discusses how to maximize the value of a business before a sale. The full article is available here.
- Daniel Shea joins BDO Capital Advisors as Managing Director
- Ken Csaplar and the BDO PErspective Private Equity Study were featured in the article "BDO USA: Limited Partners Returning To Private Equity; Portfolio Hold Periods Extending" that was published on January 25 by Private Equity Professional Digest. The article was also featured in the outlet’s "Morning Coffee" newsletter. Results from the study are available here.
- BDO Capital Advisors was named a top 10 boutique M&A investment bank of the year at the M&A Atlas Awards held in New York City on November 19, 2010. The award recognizes firms for top transactions in the mid-market segments completed in the previous 12 months, ending October 2010.
- Robert “Bob” Snape Joins BDO Capital Advisors as Managing Director
- Valentina Midura Appointed Managing Director of BDO Capital Advisors
Get Two Bites Of The Apple - Sell Your Company Twice
In addition to its core competencies in strategic sales, BDO Capital Advisors has a well-defined track record of facilitating and closing Leveraged Recapitalizations (“Recap(s)”). A leveraged recapitalization is a transaction where a private equity firm uses outside debt from a bank together with its own capital to buy a controlling interest in the ownership of a company. While creating substantial amounts of seller liquidity, this transaction type allows existing owners or management to continue their employment while also maintaining an economic interest in a newly formed acquisition company. This residual ownership interest allows the original sellers and core legacy management to share in the growth of the company upon its future sale or monetization event. Typically, the process of successfully completing a leveraged recapitalization mirrors that of a strategic sale with some notable exceptions:
The buyer universe interested in this type of transaction is primarily private equity ("PE") firms. With approximately 2,000 such companies, BDO Capital has access to and experience with many of the world's leading PE firms.
Leveraged recapitalizations can be very complicated transaction structures. Our professionals understand the advantages and disadvantages of hard equity financing. While traditional sales to a strategic acquirer normally result in a 100 percent monetization of the seller's ownership interest, a Recap normally requires future ownership interest in the newly formed acquisition company. The form of ownership can be in a security as simple as common stock or as complicated as redeemable or cumulative preferred stock with nonconventional pay-in-kind features. BDO Capital has experience in structuring and negotiating these securities having generated nearly $1 billion in shareholder value from these transactions.
Significant shareholder value can be gained or lost with equity promotes. Proper alignment of the PE firm and the seller's interest can result in large amounts of free equity and value to the client. BDO Capital has negotiated and procured equity promotes in all but a few of its recapitalizations.
Fees paid for corporate acquisition services normally include a monthly retainer and success fee. Importantly, the vast majority of fees are paid upon and conditional to the successful outcome of a transaction insuring proper alignment of interests.
Please see our recent article " Leveraged Recaps…More Cash?" for more information on this transaction type.