Our team takes an interdisciplinary approach to evaluating a Company’s capital needs. We bring an extensive network of debt capital providers and an understanding of leverage and tax situations to the table to help our clients.
- Dividend Recaps – We have deep and long relationships with commercial banks. In this scenario we help companies borrow funds from a senior lender. Once the loan is closed the new cash comes in to the Company and then is paid out to the shareholders as a dividend.
Our capital markets team will work with you to secure the most favorable terms and bank partner for the transaction.
- ESOPs – At White Rock Advisors our team of experts can help you create an Employee Stock Ownership Plan (“ESOP”). One of the uses of an ESOP is to allow one or more owners of a business to sell all or part of their stock to an ESOP for employees of the business and then “roll over” the sale proceeds into other investments, including U.S. public companies and mutual funds. Our capital markets team can then assist the ESOP to borrow money, which will then purchase a percentage of the stock in the company from the shareholders.
- Management Buyout – At White Rock Advisors we take great pride in assisting companies with their succession plans. Many times the plan is to turn over ownership of the company from the owner to its management team. We can help the management team secure debt financing to purchase all or substantially all of the owners shares. The proceeds of the loan are paid to the owner as a one-time cash payment for their stock in the Company. The difference between the loan amount and the total amount the owner wants for the Company is the value retained by the owner. That retained ownership can come in different forms including common stock, preferred stock, a seller note or include both stock and a note.