Audio/Visual Supplier to the Hotel Industry
The owners had an offer to sell the Company for $18 million. While interested in personal liquidity, they were confident in the future growth prospects of the Company, and did not want to sacrifice long term value for a payout today. The owners came to Tunstall to help explore other options.
Tunstall received proposals from several liquidity sources, including mezzanine lenders, and minority and majority private equity firms. Confident that they could grow the Company themselves, the owners chose to take $10 million of mezzanine debt with a 12% warrant ($8 million was distributed to the owners) in addition to recapitalized the existing $9 million senior debt.
The owners were able to weigh all available options and decide what worked best for them. They received $8 million of personal liquidity and retained 88% of the Company, which they will grow prior to exploring a second liquidity event.