Major Shareholder Wanted Liquidity but Did Not Want to Exit

· Represented the owner of a large defense-related manufacturing company:
- Sales $50+ million
- Hired a large "Wall Street" firm to represent them in a sale of the business
  after promising a lofty valuation
- After that firm was unsuccessful in finding a buyer at the promised
  valuation, we were engaged as the financial advisor to consider
  all capitalization and liquidty alternatives

· The process we undertook:
- Did complete analysis of business and financial condition, including
  projections
- Developed a strategy to maximize borrowing capacity
- Achieved a recapitalization of the balance sheet to provide excess
  capital which allowed for a special distribution paid to shareholders

Key Takeway: With proper deal structure, it was possible to achieve owner liquidity without equity dilution or sale of business.