Equity Restructuring

We recognize that a company’s equity structure is the fundamental bedrock of its ownership, control, and future growth potential. Over time, for various strategic, operational, or financial reasons, an existing equity structure may no longer optimally serve the interests of the company or its shareholders. Our Equity Restructuring Services are designed to provide expert guidance and execution in realigning ownership interests, optimizing capital allocation, and enhancing shareholder value.

In an ever-evolving market, a well-aligned and optimized equity structure is crucial for attracting investment, incentivizing management, facilitating strategic transactions, and ensuring long-term corporate health. Whether your company is seeking to simplify its ownership, prepare for a liquidity event, address shareholder disputes, or incentivize key personnel, MERGERSCORP offers the specialized knowledge, strategic foresight, and transactional expertise to navigate complex equity restructuring initiatives successfully. We work closely with founders, management teams, investors, and other stakeholders to craft solutions that empower your business to achieve its strategic objectives.

Our approach to equity restructuring is rooted in a deep understanding of corporate finance, governance, and market dynamics. We combine rigorous analysis with creative problem-solving to develop tailored strategies that address your specific challenges and maximize value for all stakeholders. We are committed to fostering transparency, fairness, and long-term sustainability in every engagement.

Our comprehensive Equity Restructuring Services include:

1. Strategic Assessment and Objective Definition: We begin by conducting a thorough review of your current equity structure, shareholder agreements, and corporate governance framework. More importantly, we work closely with you to clearly define your strategic objectives for the restructuring, such as: * Preparing for a future M&A transaction or IPO * Facilitating intergenerational wealth transfer * Resolving shareholder conflicts or deadlocks * Optimizing capital structure for growth or profitability * Attracting new investors or strategic partners * Creating effective employee incentive programs * Streamlining ownership for improved governance

2. Valuation and Financial Modeling: Accurate valuation is critical to any successful equity restructuring. We provide independent and robust valuation analyses of the company and individual equity interests. Our sophisticated financial modeling helps us to forecast the impact of different restructuring scenarios on shareholder value, cash flows, and future financial performance, ensuring informed decision-making.

3. Strategic Option Analysis and Structuring: Based on our assessment and your objectives, we develop and evaluate a range of equity restructuring alternatives. This may include:

* Shareholder Buyouts: Facilitating the purchase of shares from existing shareholders, whether minority or majority.

* Share Capital Reduction/Increase: Adjusting the number and type of shares outstanding to optimize capital structure.

* Recapitalizations: Modifying the company’s capital structure through changes in the mix of debt and equity, often involving the issuance of new securities or the repurchase of existing ones.

* Share Splits/Reverse Splits: Adjusting the number of shares outstanding to improve marketability or share price.

* Dividend Recapitalizations: Issuing new debt to fund a large dividend payment to shareholders.

* Founders’/Early Investor Restructurings: Realigning ownership stakes to reflect current contributions, vesting schedules, or strategic shifts.

* Creation of New Share Classes: Designing new classes of shares with specific voting rights, economic entitlements, or liquidity preferences.

* Employee Stock Option Plans (ESOPs) / Incentive Schemes: Designing and implementing plans to incentivize and retain key employees through equity participation.

* Pre-IPO Restructuring: Streamlining ownership and governance in preparation for a public offering.

4. Negotiation and Documentation: We provide expert negotiation support, representing your interests in discussions with existing shareholders, potential new investors, and other stakeholders. Our team works in conjunction with legal counsel to draft and review all necessary documentation, including shareholder agreements, share purchase agreements, corporate resolutions, and offering memoranda, ensuring legal compliance and protection of your interests.

5. Implementation and Post-Restructuring Support: We guide you through the entire implementation process, from securing necessary approvals to completing the transaction mechanics. Our support extends beyond the closing, ensuring that the new equity structure is effectively integrated into your corporate governance and operational framework, setting the stage for future success.