Press Release

Boston, MA – G2 Capital Advisors (G2) announces the appointment of Randy Lay as Managing Director in the Restructuring & Revitalization group. With over 40 years of comprehensive expertise in financial and operational management, systems implementation, capital raising, restructuring, and M&A across diverse industries, Randy brings invaluable insight and leadership to the firm.

Prior to joining G2 Capital Advisors, Randy was a client in two distinct capacities. He served as the Executive Vice President and Chief Operating Officer of Williams Industrial Services Group, a provider of civil construction services to the nuclear and fossil energy generation markets. Before his tenure with Williams, Randy held various executive positions at GEO Specialty Chemicals, including Executive Vice President, Chief Financial Officer, Secretary, and Treasurer, during which time G2 also served as a strategic partner. 

Randy’s notable career includes pivotal senior financial and operational roles at organizations such as Lazydays RV, Universal Access, Metromedia Fiber Network, International Specialty Products, United Technologies, and Xerox. With extensive experience spanning diverse sectors including construction, chemical, retail, automotive, and telecommunications, Randy has consistently demonstrated his aptitude for navigating complex challenges to achieve favorable outcomes. With a robust background in manufacturing, construction, and distribution, both domestically and internationally, Randy is well-equipped to drive positive results for Restructuring & Revitalization clients on the G2 platform.

“We are thrilled to welcome Randy Lay to the G2 Capital Advisors team,” said Ben Wright, Chief Operating Officer at G2 Capital Advisors. “His wealth of experience and proven track record in financial and operational restructuring will further strengthen G2’s capabilities in serving our clients.” 

Ben Wright emphasized, “Randy’s depth of knowledge and strategic acumen make him an invaluable addition to our leadership team. We’ve seen how his insights have generated tailored solutions and exceptional results for our past clients.”

In addition to Randy Lay’s appointment, G2 Capital Advisors also acknowledges the recent addition of Nick Palumbo as an Associate on the Restructuring & Revitalization Team. Prior to joining G2, Nick served as an Investment Banking Associate at MUFG, where he developed complex 3-statement models, assisted in negotiating terms and credit agreements with private equity clients. Additionally, Nick has experience supporting credit and portfolio management at Galaxy Digital, New Mountain Capital, and Bank of America. Nick brings fresh perspective and dedication to delivering exceptional client service.

Interested in joining the G2 team? Explore and apply to open opportunities now.

About G2 Capital Advisors:

G2 Capital Advisors provides M&A, capital markets, and restructuring advisory services to the middle market. We offer integrated, multi-product, and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be our clients’ trusted advisors of choice, including corporations and institutional investors. For more information, visit www.g2capitaladvisors.com

Randy Lay
Managing Director, Restructuring
[email protected]

G2 Capital Advisors (“G2”), a leading investment banking and restructuring advisory firm, has expanded its senior leadership team by welcoming Jenny Lashway as Vice President of Finance. This strategic appointment aligns with G2’s continued commitment to supporting our firm’s evolution with seasoned and sophisticated executives. 

“We have achieved considerable growth over the last many years, but we are entering an exciting period of opportunity for our firm.  As G2 continues to scale, we need a complete leadership team that reflects and can support—our organizational depth. Jenny’s expertise not only strengthens our leadership team but also plays a pivotal role in shaping G2’s trajectory.” – Matt Konkle, President of G2 Capital Advisors.

Jenny Lashway joins G2 with nearly 20 years of financial experience at leading consulting firms, including Altman Solon, Huron Consulting Group, and FTI Consulting. In addition, Jenny worked in the Financial Reporting group of Boston-based hedge fund, The Baupost Group. As Vice President of Finance at G2, Jenny leads financial operations, including financial reporting, budgeting, forecasting, strategic finance initiatives, system optimization, and process improvement. Her analytic depth and appetite for solving new problems will help G2 optimize operations across diverse client needs and engagements.   

About G2 Capital Advisors:

G2 provides M&A, capital markets, and restructuring advisory services to the middle market. We offer integrated, multi-product, and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor to our clients, including corporations and institutional investors. 

Interested in joining the G2 team? Explore and apply to open opportunities now.

Jenny Lashway
VP, Finance
[email protected]

In mid-November each year, operators, investors, advisors, lenders, lawyers, and service providers meet in Las Vegas for the annual convergence of industry insight and expertise: the Restaurant Finance & Development Conference. G2’s Heidi Piché and Jenn Faulk attended and synthesized the key themes coming out of the three-day event. 

Everyone is approaching 2024 with caution. Brands wary of consumer cost-consciousness are breaking from existing strategies to test traffic-driving discounts and value offerings. Operators fatigued by ongoing challenges are looking for an exit—likely leading to a spate of seller activity.  Lenders are watching how consumers react to recent price increases, subsequent traffic declines, year-over-year profit margin trends, and the overall share-of-wallet relationship as they assess internal credit appetites. 

What does all this mean for restaurant operators looking for a life raft—namely, capital or a change-of-control transaction in 2024? We’ve broken down the four most important insights. 

Bigger is Better

Why scale matters more than ever. 

It is simply more expensive to do business today. The cost of inventory, labor, real estate, and capital improvements have all risen. What’s more, the borrowing index has surged by 200 bps compared to 2022, coupled with elevated risk premiums being charged by lenders. For many, the price to secure the capital is at a premium, but for those who can scale, mainly through acquisition, opportunities await, including:

  • Bolstered buying power and cost synergies on overhead 
  • Easier access to capital due to size and scale
  • Premium platform valuations gained through multiple arbitrage    

Hold, Please

When waiting to raise capital is wise. 

While gaining market mass is one winning strategy, holding tight is another. That’s because there are fewer active lenders today—most with more restrictive credit risk appetites and many prioritizing existing relationships. What’s more, many lenders are reducing leverage at underwriting and covenant setting by at least half a turn. The depth of the syndication market also poses challenges, requiring larger commitments from the top-tier banks. This exclusive credit club leaves a lot of restaurant operators out; therefore, if you have the runway, sit tight with your existing agreements.

If you are still considering borrowing, be aware that most banks require ancillary business, meaning business owners are tying up funds that in prior years could have been used for growth—and are increasingly coming forward with personal deposits to meet requirements. If you are exploring private credit to fill the gap left by the tighter senior credit market, be prepared to pay a premium on top of what senior lenders offer. 

Don’t Despair

Which deals are getting done. 

The dynamics may seem complex, but the reality is that strategic and private equity groups have capital to deploy and are still actively looking to acquire businesses. Another benefit: Given deal scarcity, strong assets still command competitive processes and high multiples. 

Here’s what we expect to see in terms of deal flow and close rates in 2024:

  • Conference participants expressed optimism about the prospects for increased M&A activity in 2024, particularly for well-capitalized, credit-worthy companies looking to scale, acquire alternate revenue channels, or underwrite cost synergies.
  • Despite a disconnect between buyers and sellers over the last two years, operating trends have stabilized, leading to a compression in the bid/ ask spread between buyer and seller.
  • Fatigue is expected to prompt more owners to ask, “Is now the right time to sell?” 
  • Due diligence will take center stage, resulting in more extensive analyses performed over a longer period and posing higher investment committee hurdles.

More deals and diligence mean a potentially lower close rate but an overall healthier M&A year, resulting in the survival of the fittest.

Get Prepared 

How to make a successful exit.

Given today’s market, you must prepare well ahead of an exit. Consider the past and present: Do you have a strong historical track record and the right team to support your business going forward? Are you confident that your operations are strong today and sustainable in the face of future market shifts? 

At G2, we are available as a proactive resource to help assess your financial and operational health as well as strategic alternatives. Our sector strength gives us a point of view on where the restaurant industry and lending community are headed—and how not to get left behind.  

To learn more about how our industry insight can support your business goals, contact our Consumer & Retail team. 

Heidi Piché
Managing Director, 
Consumer & Retail
[email protected]
617.823.9398
Jenn Faulk
Vice President, 
Consumer & Retail
[email protected]
508.654.2346
Matt Konkle
President
[email protected]
317.371.6608

G2 Capital Advisors (“G2”) is excited to welcome Reed Upson as Managing Director of Capital Markets. Located in Denver, Reed counts himself as part of the recent Rocky Mountain migration that has brought more lenders and sponsors to the region. Formerly the Head of Capital Markets at the San Francisco-based debt advisory firm Business Capital (BizCap), Reed has supported companies with capital raises, refinancings, and financial restructurings and has a depth of credit underwriting, transaction execution, and business development experience. To introduce Reed and get his take on current capital markets, we sat down with him to ask five fast questions:

  1. Welcome to G2! What drew you to our firm and convinced you to come aboard? 

    I first met Ben Wright, Chief Operating Officer at G2, about seven years ago in San Francisco—the G2 office was one floor above my office—and I got to know Ben pretty well. I was impressed by G2 early on: its focus on industries and integrated multi-product approach got my attention.

    Over the years, I’ve watched G2 service companies’ complete life cycle, supporting growth and navigating distress with bigger, more sophisticated, and increasingly complex deals. From my perspective, the G2 model is different from anything in the market today, and its growth has been both subtle and significant. I’d say the firm is a sleeping giant in the middle market, and I’m excited to grow professionally within its integrated platform. 

    But what really sold me was coming out and meeting everybody in Boston. The team maintains an all-in, entrepreneurial attitude. The people have a refreshing balance of empathy and intelligence, backed up by tremendously deep product and industry knowledge. It’s an impressive group of smart, low-ego people.

  2. What are you most looking forward to as Managing Director of Capital Markets? What industry and practice synergies are you excited to explore in this role? 

    While I have capital markets experience across G2’s industry sectors, my ability to now partner with our industry experts is a powerful differentiator. It lets me have nuanced conversations with bankers and lenders struggling with liquidity challenges and rising default rates. In addition, I’m able to pull in specialty groups like restructuring, to address clients’ complex situations. And, because our executive team is largely made up of former operators, G2 leadership brings an authentic appreciation to each engagement. Our team members have sat in our clients’ seats.

    I’m also excited to tackle larger, more institutional challenges through private equity partnerships, like raising equity to recapitalize—either a minority raise to help grow a business or a majority recap to return capital to limited partners (LPs). Or bringing other creative financing solutions to the table, such as mezzanine financing and preferred equity structures, which are helping increase portfolio companies’ cash flow by retiring higher amortizing debt structures. 

  3. The interest rate hikes that began in March 2022 have profoundly affected capital markets, inflating valuations and borrowing costs. How does the current environment create challenges and opportunities for our clients? How do you expect the market to change in 2024?

    I don’t think there will be a massive shift in interest rates, especially over the next year. Could rates come down a little bit? Perhaps. But what’s more likely is that strategics and sponsors will adjust to this new normal Eventually, sponsors will have to start returning capital to LPs, and companies will have to transact—and there will be clear winners and losers. Companies with better leverage profiles and capitalization can take advantage of add-on acquisitions. Companies on the other side of that coin will face new challenges: “What do I do? Do I sell? Do I recapitalize? What are my options?” 

    G2 is uniquely positioned to address both sides of that equation, which is exciting.

    I imagine on the lender side, there will be a lot more distress with banks specifically—and some cracks on the private debt side, too. After the whirlwind of M&A activity in 2020 and 2021, many of these businesses now have increased debt, reduced valuations, and face a looming maturity wall in 2024 and 2025. While lenders had previously been happy to amend and extend, I think hard decisions are coming, and the market is going to start seeing more refinancing activity being forced on companies from lenders, especially banks.

    Capital markets advisors will have to get more creative with stretch pieces like preferred equity or mezzanine financing to fill the gaps. The positive backdrop to all of this is that despite the uncertainty in the market, there is still a lot of capital out there—and private credit fundraising is at an all-time high. It’s my job to figure out from where to source it and how we can structure it to best support our clients. 

  4. How have you generated new business and steered clients through challenging market cycles?

    My business has been built on relationships with trusted advisors—lenders, attorneys, and CPAs with clients facing default and needing capital to either exit or pivot. I’ve tended to work with the same clients over time and across multiple situations—whether they’ve hit a speed bump or they’re continuing to grow. Anchoring long-term relationships will be easier at G2 as our investment bankers are so plugged in and can stay on top of industry-specific needs. There’s a natural progression of working alongside our clients’ business evolution.

    As a capital markets advisor, that parallel momentum is essential. I’m in the market every day, talking with lenders and investors and figuring out what the capital markets are actually doing. At G2, the question goes beyond, “Can we raise this capital or not?” Our team can see the sector-specific implications and the restructuring opportunities. With G2, the greatest value I can pass on to our clients is to anticipate what’s next and act as a comprehensive resource through any market cycle. 

  5. When not sourcing debt and equity, how do you spend your time? 

    I have two young kids who keep my wife and me pretty busy. As a family, we lean into all of Colorado’s outdoor activities—hiking, skiing, and biking. I’ve had to dial back my golf game, but I’ve gotten back into tennis. 

Like the markets, Reed is in perpetual motion and will be a tremendously valuable addition to G2’s team. For more information on G2’s capital markets capability, visit us online or contact our team leaders.

Reed Upson
Managing Director, Capital Markets
[email protected]
415.755.8851
Ben Wright
Chief Operating Officer
[email protected]
619.972.3586

CLIENT

Momentum is a leading global managed service provider focused on connectivity, communication, and collaboration solutions for more than 5,000 customers across 60 countries.  Momentum offers a comprehensive platform including a voice enablement solution for Microsoft Teams, managed network including SD-WAN, global connectivity, contact center, and cloud voice. Momentum is based in Atlanta, GA and has more than 500 employees.

SITUATION

Momentum hired G2 as its exclusive financial advisor to help execute on its inorganic growth strategy, with the primary goals being to expand its managed cloud services and UC offering, broaden its international footprint, and deepen its market penetration in key verticals.

ENGAGEMENT

“G2 is thrilled to support the Momentum team in what has been an aggressive acquisition roadmap that has further entrenched the company as a clear global leader in a rapidly consolidating space.  Asset Black expands Momentum’s geographic reach, bolsters scale and adds specialized vertical depth in the financial technology sector,” said Jereme LeBlanc, G2 Managing Director in Technology & Business Services.  

OUTCOME

“We are delighted to announce the acquisition of Asset Black, representing another milestone in our growth strategy,” said Todd Zittrouer, CEO of Momentum. “The addition of the complementary Asset Black portfolio and team further solidifies our position as a leading provider of managed cloud and network services. This acquisition aligns with our mission to enable customers and partners to thrive through superior technology and premier customer service.”

“We couldn’t be more excited to combine forces with Momentum. With Momentum’s proven track record and commitment to excellence, we are confident that together we will deliver exceptional solutions to our customers and achieve remarkable success in the managed network space and beyond,” said Mark Weeks, CEO of Asset Black. 

About G2 Capital Advisors

G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor to our clients including individuals, corporations,  and institutional investors.

With G2, the management team elevated its financial and operational acumen and established a foundation for future success. Click to download the full situation summary and solution