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Capital raising

Wild Rose Advisors advises founder-owned companies on a minority investment, a majority recapitalization or debt, for an owner who seeks capital or a partner rather than a full sale.

  1. 01

    Minority Investment

    A partner buys a share of the company. The owner takes some value out, keeps control and continues to lead the business.

  2. 02

    Majority Recapitalization

    A sale of a controlling interest in which the owner takes most of the value out and keeps a share of what the company becomes.

  3. 03

    Debt and Transition

    Financing for an acquisition, for equipment or real estate, or for a transfer to management or the next generation without a full sale.

When an owner needs capital rather than a buyer

Many owners who contact the firm do not intend to sell outright. Some seek to acquire a competitor, to fund a second location, to bring a successor into ownership, or to take part of the value they have built off the table while continuing to run the company.

Each of those is a financing first, and its terms determine what the owner keeps. The firm advises on them as it advises on a sale: from the owner's side of the table, with a written analysis first and the sources of capital mapped before anyone is approached.

The Engagement Comprises

  • Capital structure: what the company can carry, in what form, and what each choice does to control
  • Preparation of the financial model, the information memorandum and the data room
  • Identification of lenders, private equity, family offices and private investors active in the sector
  • A process in which more than one source competes, and negotiation of terms through closing

Equity

In a minority investment or a recapitalization, the owner sells part of the company and continues to lead it, with a partner whose interest is aligned with a later sale at a higher value. In these transactions the terms typically matter more than the price: governance, the rights of the new partner, and what happens at the next sale. The firm's role is to see that the owner understands every one of them before signing.

Debt

Acquisition financing, equipment and fleet financing, real estate and working capital. The asset base of a service company is often larger than a lender first sees, and contracted revenue is often invisible on the income statement as presented. The firm presents both properly before a lender is asked for terms.

Ownership transition

Transfers to management or to the next generation, financed so that the departing owner is paid and the company keeps the capital it needs. These are the transactions most often attempted without advice.

How the firm conducts this work

Where a financing involves the offer or sale of securities, that portion of the transaction is conducted through an appropriately registered broker-dealer. The firm's advisory work, the analysis, the preparation and the negotiation, is conducted by the firm directly.

As with every engagement, the first step is a written assessment of the company, at no cost.

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