Majority Recapitalization Case Study

Televerde

The Business

An outsourced demand creation agency, Televerde's saleslead and customer data services have helped many Fortune 500 companies, especially in the tech industry, increase their return on marketing and customer acquisition spending.
"Main Street's investment helped elevate several parts of our company that we did not previously have the bandwidth to support. Their operational support allowed us to make a key hire to bolster the executive team and add productive external board members. We even received an introduction to a new customer." Jim Hooker CEO, Televerde

The Transaction

Televerde was originally introduced to Main Street by an intermediary representing a 100% liquidity transaction for the company’s owners. After learning more about Televerde, Main Street realized there was an opportunity to provide a partial liquidity event for the company’s founder (who would continue to serve as Televerde’s CEO), allow for first-time ownership by several key members of the management team, and buyout multiple silent partners seeking an exit.

By providing 100% of the capital requirement, Main Street was able to structure the transaction to align interests among all parties including the founder, the silent partners, the current management team and Main Street. Throughout the partnership, Main Street has been able to provide critical strategic support and financing to help grow the business.

The Results

Before Main Street Partnership

  • Silent partners held meaningful ownership
  • No path for management to own equity
  • Limited growth prospects due to capital constraints
  • Difficult to attract talent
  • No company board

After Main Street Partnership

  • Silent partners receive desired liquidity
  • First time ownership is held by key members of management
  • Growth prospects coupled with significant capital availability
  • Elements to attract talent in place; Main Street introduces key CFO
  • Active internal and external board participants introduced by Main Street

Transaction Summary

Company

  • Proven market position
  • Strong management team with meaningful ownership
  • Attractive growth opportunities

Transaction Type

  • Majority recapitalization
  • One-stop financing
  • Growth capital

Investment Structure

  • Senior secured debt
  • 47% equity ownership