Companies facing tightening credit or needing expanded borrowing capacity to meet corporate objectives achieve benefit through financial restructuring. Hankin & Co. follows a proven, systematic approach to investment banking representation for companies facing credit restructuring The Hankin process encompasses six identifiable phases as described below.
Phase1--Financing Boot Camp
- Facilitate off-site, agenda-driven meetings with owners and management as requested or required. ·
- Clarify the goals of the company; understand its financing requirements and industry dynamics. ·
- Determine the amount of debt financing or other capital required. ·
- Determine the form and structure of the proposed refinancing or restructuring transaction. ·
- Create a refinancing or restructuring plan, which will meet liquidity requirements for the company and allow for debt repayment from predictable revenues.
The Hankin financing boot camp generates hard-edged, fact-based, output-driven decision making. By understanding the company and the industry, we are able to clarify financing requirements quickly and identify the potential sources of refinancing or restructuring financing or capital.
Phase 2--Valuation Analysis
The Hankin team of valuation experts utilizes its proprietary valuation models to determine a preliminary value estimate of the client business.
- Valuation analysis provides information used to: ·
- Determine the financing impact on valuation ·
- Determine the level of financing required ·
- Estimate the percentage of stock or warrants to offer in an equity deal if equity meets clients objectives ·
- Compare the investor's assessment of value ·
- Test management's key assumptions that drive future value
- Determine the level of debt the company will be able to service
Hankin proprietary valuation models measure and assess:
- Market comparables ·
- Transaction comparables ·
- Public company and industry guidelines ·
- Discounted cash flow ·
- Costs and enhancements from the financing
While the Hankin proprietary valuation models provide indications as to the value of a company, value will ultimately be determined by: ·
- Management's ability to execute its business plan ·
- Conditions in the economy and industry ·
- Customer demand trends ·
- Technological innovation
Phase 3--Financing Memorandum
- Research the company's industry to determine the key competitive players, current market size, and growth projections. ·
- Become intimately familiar with the company, its opportunities, and its future goals and value drivers to adequately communicate to prospective lenders and investors. ·
- Compile data describing the company and its processes, market, strategic objectives, and other relevant information to be featured in the company refinancing or restructuring memorandum.
Although it is prepared by Hankin, we work directly with the client to build the refinancing or restructuring memorandum, which becomes the initial primary informational resource for interested sources.
Phase 4--Search and Match Potential Financing Sources
The strategic review and compilation of the company refinancing or restructuring memorandum leads directly and logically to the parameters used to identify sources of potential financing. The parameters are tested by actual search and match results and, if necessary, are refined accordingly.
The Hankin firm works directly with the client to formulate those parameters and to design from them a set of search criteria.
- Build a
database of potential financing sources including information such as:
·
- Financing and capital sources with whom Hankin has ongoing relationships. ·
- Financing and capital sources discovered during the search and match process. ·
- Additional updates regarding Hankin contact with sources and narrowing of field.
The database allows the firm to maintain current information, track industry trends, and quickly identify potential financing sources having a high likelihood of being an appropriate "match."
As potential debt financing or other capital sources are identified, Hankin professionals work with the client to prepare to present the opportunity by developing: ·
- A contact letter that properly identifies the client's appropriate industry niche and briefly describes the financing opportunity to the institutional resource. ·
- An executive summary describing the opportunity.
Phase 5--Follow Up with Interested Parties·
- Send company refinancing or restructuring memorandum to each of the interested parties for evaluation following receipt of a signed confidentiality agreement. ·
- Respond to questions which may arise and provide additional information as necessary.
Phase 6--Execution and Closing
Time is the enemy of all deals. The Hankin firm drives the process accordingly by: ·
- Helping the client develop a detailed, aggressive, realistic time and responsibility schedule with accountabilities. ·
- Assisting the client throughout all phases of negotiations from exploring initial possibilities through signing of a conditional financial letter of commitment, negotiating a final agreement, and execution and closing.
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Fees
- Fees are structured with input from the client to ensure that incentives are consistent with client objectives.
Telephone (310) 556-4422 Fax (310) 276-9414
