Sell-Side Advisory

Franklin Douglass partners historically have served on the banking and equity side of numerous transactions. Having formed, invested and been directly involved in private equity firms Franklin Douglass thoroughly understands the transaction process from a buyer’s perspective. Franklin Douglass recognizes that our clients only have one opportunity to sell their business; therefore, maximizing the valuation to benefit our clients is our primary objective. Franklin Douglass has the ability to provide the following to our sell-side clients:   

  • Preparation of detailed confidential memorandums that details information related to the critical items pertaining to the investment opportunity. 
  • There are certain items in every transaction that positively or negatively impact a company’s valuation. Franklin Douglass proactively identifies these items and provides necessary analysis to positively impact the final valuation. 
  • Franklin Douglass strives to run a targeted, efficient process. Franklin Douglass is continuously in contact with prospective buyers. Franklin Douglass has the ability to match a client's business with active buyers whose investment criteria match the personality of a client’s business. 
  • Franklin Douglass monitors active equity group’s portfolios. This provides us the ability to match a client’s business with prospective synergistic buyers. Individuals and equity groups that have similar business interests are more likely to meet, or exceed, a client’s selling expectations. 

Franklin Douglass will manage necessary documentation and tasks throughout the process. Franklin Douglass populates only meaningful information necessary to consummate a transaction. This effort conserves time and effort for buyers and clients. · Franklin Douglass will manage the process, outside advisors and timeline from beginning through completion. Franklin Douglass’ primary objective is to shoulder the burden to make the process as painless and successful as possible. 

Buy-Side Advisory

Franklin Douglass provides business development services to clients that aspire to growth their organizations through add-on investments.  Franklin Douglass acquires a comprehensive understanding of the legacy operations to more clearly define a target criteria prior to soliciting and identifying investment opportunities.  Franklin Douglass performs preliminary due diligence comparable to the level large equity firms analyze prospective investments.  Franklin Douglass assists with qualifying and quantifying investment opportunities, deal negotiations, developing investment summaries for board and bank presentations, due diligence and reviewing legal documentation.  Franklin Douglass will be with you from beginning through completion of the transaction.  

Recapitalization

Privately-held companies rarely consider recapitalization as a funding alternative. If a company is under-capitalized, the ability to right size the company’s capitalization structure may be accomplished through an infusion of subordinated debt and/or equity capital. Alternatively, company shareholders may consider a partial sale of their investment in the business. Franklin Douglass can assist with developing and executing an appropriate recapitalization strategy for a client’s company. 

Equity recapitalizations provide a company the opportunity to reset the balance sheet for growth and/or create a shareholder liquidity event. On a daily basis, privately-held companies strive to manage operational efficiencies, generate cash flow and minimize risks.  However, few consider the impact of their decisions as they relate to the enterprise and equity value of the company.  While a company’s profitability is a primary component to valuation, sophisticated equity groups also consider factors such as continuing management, operational efficiency and cost of capital necessary to fund the business operations in determine value.  A successful recapitalization of a company should provide necessary financial resources to meet a company’s operational objectives and provide a cost of capital structure to enhance the company’s enterprise value. 

Depending on the size of the funding requirement and ownership objectives, existing shareholders may seek a partial liquidity event.  This provides shareholders the opportunity to realize a portion of the wealth created by the company and reduce risk.  However, this option also provides shareholders the opportunity to sell their company twice and realize the benefits of future growth initiatives.  This strategy may greatly enhance the overall enterprise value in their investment. 

A debt recapitalization is typically a lower cost option; however, it is dependent on a company’s borrowing capacity, existing level of bank debt and the financial stability of the company. Considering the shareholders recapitalization objectives, implementation of subordinated debt may be appropriate to achieve the desired outcome. 

Franklin Douglass’ network of equity, subordinated debt and traditional and non-traditional financing sources encompass a wide range of individuals and firms seeking to make debt, minority equity and majority equity investments. The client’s objectives and circumstances will be determinant in identifying the appropriate firm(s) to consider for a transaction. Franklin Douglass has the expertise, flexibility and network to execute the predetermined strategy within a mutually agreeable time frame. This can be accomplished for companies that are financially challenged or financially secure.

Equity Capital

Franklin Douglass has resources and expertise to assist companies seeking equity capital to fund organic growth, add-on investments or achieve partial shareholder liquidity. Franklin Douglass is engaged to assist with determining the appropriate structure for equity infusion, prepare a detailed investment summary to present to prospective pre-qualified capital sources. Franklin Douglass’ attention to detail, along with our methods to structure an investments cost of capital, will position a company to maximize its return objectives. Franklin Douglass’ years of experience purchasing and investing in companies provides business owners with a competitive advantage during the process. 


Refinance and Restructure

A company’s cash flow is paramount to the level of success company achieves; however, a company with a capitalization structure that allows continuing access to low cost capital to fund growth is the foundation for a stable business operation. Considering the tightening credit standards due to regulatory pressures on traditional banks and economic volatility becoming the norm, many privately-held companies are finding it increasingly more difficult to obtain a flexible capitalization options.  

Securing financing in today’s market requires much more than a pedestrian effort.  Franklin Douglass is unmatched in developing analysis matching a company’s operating performance with its ability to satisfy current, and future, capital needs. Several firms in our network are reliant on our analysis to determine their level of interest and participation. Considering our influence, Franklin Douglass will be the primary contact for all aspects of a project. Beginning with exploratory discussions with select firms, Franklin Douglass will negotiate term sheets from competing firms and assist in the selection of a firm best suited for the company.   

Franklin Douglass long standing relationships with firms capable of refinancing and restructuring of bank debt, securing second lien, subordinated debt, and other types of junior debt, as well as accessing equity capital. 

Franklin Douglass has successfully consummated transactions for companies that were considered non-bankable by most traditional lenders. Whether a company is overextended with current lender, under a forbearance agreement or experiencing other difficult challenges, Franklin Douglass has resources within our network that allow companies to obtain an appropriate level of capitalization without the exorbitant cost of non-traditional financing.