Recapitalization

Services

Recapitalization

Whether a company can deal with equity issues arising in the course of its business may prove to be a crucial factor since companies are required to protect their creditors and comply with statutory regulations, bank covenants and various tender criteria at the same time.

There are a number of ways to consolidate a company's equity position and to eliminate the negative equity. Nonetheless, businesses need to be aware of the necessary resources, the time required for the process, as well as the long-term consequences of the method selected before they make decisions.

Explore Content

Recapitalization methods:

  • Cash to equity 
  • Additional payment to equity 
  • Debt to equity 
  • Non-cash contribution to equity 
  • Conditional capital reduction 
  • Revaluation of Assets Restructuring: business line separation 
  • Restructuring: merger and transformation 
  • Other

Key drivers

  • Cash resources needed
  • Time needed to implement
  • Potential legal issues
  • Potential tax issues
  • Capital buffer for future losses
  • Potential effects on future P&L
  • Effects on potential future restructuring
  • Potential effects on future dividends
  • Potential limitations due to third party commitment (loan covenants)

How we may assist you?

  • We prepare case studies for evaluating the feasibility of potential solutions. 
  • We help implement the selected solution. 
  • By our in-depth experience and comprehensive knowledge in accounting, audit, taxation, legal and valuation issues – provided by one team.

Read more about recapitalization methods and more here.

Contact us

Gábor Molnár

Gábor Molnár

Partner

Gábor Molnár is a partner in Deloitte Hungary’s Audit and Advisory service line with 12 years experience, he is a chartered auditor. He has significant experience in preparation and auditing of financ... More