Turning challenges into opportunities to transform your business
What We Can Do For You
At Growthink Capital, we provide strategic and turnaround restructuring advice and guidance for underperforming businesses, and for well-performing companies following a merger, acquisition, divestiture, or leveraged buy-out.
The impact of turnaround restructuring touches shareholders, creditors, investors, employees, suppliers, customers, and the community. Our customized, strategic approach to restructuring limits financial losses and works to reduce tensions and conflicts between these various stakeholders.
Our restructuring process and services include the following components:
Discovery
- Conduct interviews with management, investors, and creditors
- Perform due diligence as to the true state of the company’s liquidity and operational viability through the business restructuring
- Review the company’s competitive landscape, products and services, financial history and projections
Strategy
- Identify areas for cost reduction, revenue growth, and improved strategic positioning
- Develop a moving forward operational, financial, and crisis management business plan, including working capital financial projections and requirements, along with the key projects and accountabilities necessary to attain the plan
- Develop a strategic restructuring plan that is tailored to the unique needs and challenges of the company
Implementation
- Create momentum and accountabilities to Implement the strategic restructuring plan
- As needed, assist in the recruitment of new management and personnel
- Achieve mediation and settlement with any / all creditors, lenders and investors
- Secure additional equity and/or debt financing as needed / possible
Why Growthink Capital
We are a Los Angeles-based, full-service investment banking and corporate finance team that provides companies of all types and sizes with independent advice on the full range of restructuring alternatives.
Our team of senior professionals has both transactional experience and industry expertise in the various facets of corporate finance, including restructuring, M&A, equity and debt financing, and a global network of financing partners and relationships to help provide clients with the widest possible array of restructuring alternatives.
We are committed to providing our clients with the right team for their unique and specific advisory needs and requirements, and we work tirelessly to get the job done right.
Growthink Capital Client Testimonials
Types of Corporate & Turnaround Restructuring
- Debt Restructuring: When a company renegotiates the terms of its debt with its creditors. This can involve extending the debt’s maturity date, reducing the principal amount owed, or lowering the interest rate on the debt.
- Operational Restructuring: When a company makes changes to its operations to improve efficiency, reduce costs, maximize recoveries, and mitigate risk. These operational issues can range from downsizing the workforce, to engaging interim management, working capital optimization, outsourcing functions, etc.
- Financial Restructuring: When a company restructures its finances to improve its financial position. This can involve complex debt restructurings, renegotiating loan terms, issuing new equity, selling assets, and/or contemplating a bankruptcy process with lenders.
- Equity Restructuring: When a company restructures its ownership structure via issuing new shares, repurchasing shares, issuing convertible debt, etc.
- Cross-Border Restructuring: When a company restructures its operations to better align with foreign markets, including establishing foreign subsidiaries, joint ventures, acquiring or divesting foreign businesses, etc.
Restructuring Strategies
There are various corporate finance, restructuring, and strategic alternatives that businesses can utilize, including:
- Merger & Acquisition (M&A): When two companies combine to achieve synergies and improve efficiency. Mergers and acquisitions can be used to consolidate businesses in the same industry, expand into new markets, or acquire new technologies.
- Reverse Merger: When a private company acquires a public company and takes its place on the stock exchange. This can be a way to quickly get a private company public, and it can also be used to avoid some of the regulatory hurdles involved in going public.
- Leveraged Buyout (LBO): When a private equity firm acquires a public company using a significant amount of debt. LBOs can be used to take a company private or to make changes to the business operations and management without having to go through a traditional IPO process.
- Divestiture: When a company sells off carve-outs, assets, or businesses that are no longer strategic to its operations. Divestitures can be used to raise cash, reduce debt, reduce risk, or focus the company on its core businesses.
- Joint Venture: When two or more companies come together to form a new company. Joint ventures can be used to enter new markets, share costs and risks, or develop new products or technologies.
- Strategic Alliance: When two or more companies cooperate to share resources or services. Strategic alliances can be used to improve efficiency, enter new markets, or develop new products or technologies.
- Debt-for-Equity Swap: When a company exchanges its debt for equity in the company. This can be used to reduce the amount of debt on the balance sheet, as well as to raise capital.
- Asset Sales: When a company sells its assets to raise cash. Asset sales can be used to reduce debt, pay off creditors, or reinvest in the company’s core businesses.
There are many different corporate restructuring strategies available to businesses, and it’s important to work with experienced advisors to figure out which one is best for your company.
Contact us today to learn more about our corporate restructuring services.