Many business owners assume that their only liquidity option is a partial or complete sale of equity in their company. However, many view equity as too valuable to hand over on anything less than attractive terms. We understand, and we can help. Allegiance Capital has been working as a trusted partner and advisor to owners of closely-held and family-owned businesses since 1998. In addition to executing leveraged buyouts, strategic partnerships and minority sales of equity, our team is expertly equipped to evaluate business owners’ needs and requirements and match those with a menu of appropriate and achievable financing solutions.

In today’s market, there are several financing options that can provide immediate and substantial liquidity under appealing rates and structures. And with interest rates expected to rise, combined with the uncertainty of the presidential election, the next several months may provide your best window to act.

At-a-Glance: Non-Dilutive Liquidity Options
Dividend Recapitalization Convertible Note
  • A solution which provides an owner with the ability to wisely borrow against the cash flow of his or her business and repay this debt over several years.
  • As the loan is repaid and/or as company performance improves, additional reasonable amounts may be borrowed, again at no equity cost.
  • The loan can be structured as a partial or complete dividend to an owner.
  • A hybrid solution which affords an owner with immediate liquidity and the optionality to either pay back the note when due (no dilution) or convert some or all of the note into equity.
  • Often utilized when an owner is considering some sale of equity but wants to defer the final decision.
Note: Above solutions are most appropriate for companies that are majority-owned by an individual or family, have $15 million+ in annual revenue, $3 million+ of annual cash flow, attractive growth characteristics and a relatively unlevered balance sheet.

Whether your goal is addressing personal, family or estate issues, buying out partners, pursuing new investment opportunities or more, Allegiance’s team of experienced investment banking professionals can guide you through the process. We have distinguished ourselves as a top-tier advisor that partners with its clients to achieve best-of-market options, terms and pricing.

Derek Woodworth - 2Delivering results beyond your expectations is what we do best.

Managing Director, Derek Woodworth
(214) 217-7720
dwoodworth@allcapcorp.com
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