Marketing Services Company is one of the leading providers of rare and collectible numismatic coins in the United States.
Goldline’s shareholder had been in the precious metals business for 50 years and was considering a shareholder liquidity event.
To maximize value, M&A Capital recommended a parallel process that considered various structures, including a sale of all of the shares and a leveraged recapitalization including management participation.
A sale to strategic buyers was considered; however, Goldline’s shareholder recognized continued growth opportunities and the leveraged recapitalization allowed the shareholder a second bite at the apple through holding a material minority interest of Goldline’s equity.
Virtually all the proceeds from the leveraged recapitalization were used to pay a significant dividend to Goldline’s shareholder. The transaction was financed through an appropriate mix of debt and equity capital.