Special Situations – Sell-Side
A company that needs to sell off part of its assets can and should realize the full value of the targeted asset. Lev2Tech can maximize your sale advantage, even in the case of distressed companies, advising you of the different options, and their relative advantages and disadvantages.
Under-performing Assets: Lev2Tech will provide an accurate, up-to-date picture of the company’s performance, with a view to maximizing its sale value. Essentials include recent financial balance sheets, capital structure, relevant industry conditions and immediate capital requirements.
We then consider all possible strategic alternatives for the transaction, including the timeline, impact on the shareholders, and needed resources and staff to execute each alternate plan. Finally we present the board with our recommendations concerning each option, based on their potential.
Corporate Restructuring: Lev2Tech works with your directors and management, and in some cases your creditors as well, to develop reorganization plans that are in the best interests of the company, stakeholders and employees – resolving these competing interests as much as possible.
We then develop a business plan with financial projections for continuing operations, while balancing the debt service with needed equity preservation or new contributions of capital. Where appropriate, we negotiate a revised equity structure by mediating among the stakeholders, and by documenting its future benefits in long-term company viability.
Recapitalization through New Equity: Lev2Tech advises corporate clients and business owners that desire an infusion of new capital to adjust the capitalisation or ownership structure of the company, which can drive the buy-out of an existing shareholder, restructure the balance sheet, or enable expansion. Our relationships with private equity firms, banks, and non-traditional lenders can provide equity specifically allocated for these purposes.
Distressed Sale Management: The potential advantages in distressed situations are maximized by Lev2Tech, including speedy processing for cash-flow relief and company morale, specialized knowledge of the specific needs of the distressed company, efficient use of time to reduce bankruptcy risks, and effective communication with potential buyers on the one hand and stakeholders on the other.
Special Situations – Buy-Side
A company in distress or other difficulty presents a unique investment opportunity with low competition. Lev2Tech understands the process of acquiring distressed companies, the different options, and their relative advantages and disadvantages.
Assessment: Because a distressed company valuation has a different set of requirements than that of a healthy business, we assess both tangible and intangible assets such as intellectual property. Together with our expertise in recapitalizing or refinancing a distressed business, Lev2Tech can analyze growth projections, cost of capital, and discount rates.
Strategizing: Profitable transactions at “bargain prices” can include gaining equity control, acquiring the rights of a secured lender by provide new debt financing, acquiring company operations and assets through bankruptcy procedures, or acquiring shares of companies that are undergoing a downsizing process. Lev2Tech makes recommendations concerning the most promising transaction with the target, based on your company’s business goals and resources.
Implementation: These strategic transactions are executed with all the finesse acquired through Lev2Tech’s extensive background, in order to assure success and reduce risk exposure. We provide substantial due diligence and careful planning, together with the speed, efficiency, and resources which drive a successful bid.