ASSET INVESTMENTS & RECAPITALIZATION

FGA ASSET INVESTMENTS 

 

Falcon Global Acquisitions has the ability to work with private and publicly traded companies to strengthen their balance sheet with an asset investment in their company. This investment will assist in positioning the company for capital raising and continued growth.

 

Through our subsidiaries and other business relationships FGA has the ability to assist in growing the companies we invest in organically and become an asset with their capital raising endeavors via our relationships with various private equity firms and investment banks globally.

 

FGA is agnostic to the industry but have a preference for technology, green energy, real estate, construction and cannabis industries .  The asset investments can range from $1 million up to $50 million depending on the company.

 

RECAPITALIZATION

 

What is a Recapitalization?

 

A recapitalization is a change in a company’s capital structure, plain and simple. Recapitalization is often undertaken with the goal of making the company’s capital structure more stable, and sometimes to boost the company’s stock price, this can be done by issuing bonds or buying back stock. Companies that do not want to become hostile takeover targets may take steps to recapitalize by taking on a very large amount of debt, and issuing substantial dividends to their shareholders of their company.  Now bankrupt companies usually need to recapitalize as a part of their reorganization plan that is set in place.

 

What is Leverage Recapitalization?

 

In the corporate world, a leveraged recapitalization is a strategy that is used to ward off a hostile takeover. This is when a company incurs a significant amount of additional debt to repurchase stocks through a buyback program or distribute large dividends to their shareholders. The additional debt may cause the stock price to drop and make it less attractive to potential corporate raiders.

 

This is a form of a poison pill and does a couple of things, first it brings the amount of debt so high that the takeover price goes up right along with it and could act as a deterrent and it keeps the shareholder interest in tack in a hostile takeover situation.

 

Now leveraged recapitalizations are not only for publicly traded companies, this strategy is also used by privately held companies as a way of refinancing, generally to provide returns to the shareholders while not selling the company outright. These types of recapitalizations can be just minor adjustments to the capital structure or could also involve a change of control.

Contact us at 352-593-8248 or via email at info@falconglobalacquisitions.com.
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