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.
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.
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