CAPITAL STRUCTURE REVIEW
Matthews South works with clients to analyze their capital structure with the objective of maximizing corporate flexibility while keeping the inherent “cost” down.
Whether you want to ensure your capital structure is prepared for future M&A or you want to understand implications of a divestiture or asset sale, the Matthews South team is here to help.
With company objectives as our focus, Matthews South will help you evaluate all available alternatives, without bias, so you can choose the best approach for your company. Our team appreciates that companies have different objectives, and we clinically analyze every piece of the capital structure to ensure that those needs are met. Some potential objectives include:
- Maximize flexibility for M&A
- Fund impending M&A (bridge vs committed financings)
- De-lever post M&A
- Deploy proceeds from an asset sale
- Deploy excess cash to fend off potential activism
- Minimize dilution
In the context of M&A, our team can be the most helpful when we are brought in as early as possible. Most companies consider the strategic rationale of M&A but then save the capital structure discussion for “later” once the deal is closer to the finish line. By considering the capital structure implications upfront, our team can ensure that the deal will not only be accretive for the company, but also make sure the financing (and pro-forma balance sheet) will be as efficient as possible.