Majority Recapitalization Case Study
The BusinessAn 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.
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.
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
- Proven market position
- Strong management team with meaningful ownership
- Attractive growth opportunities
- Majority recapitalization
- One-stop financing
- Growth capital
- Senior secured debt
- 47% equity ownership