Press Release

With interest rates remaining at multi-decade highs, more and more companies will face distress and be forced to evaluate options. If pursuit of lifeline capital or a trade sale exit doesn’t materialize for a company facing creditor uproar and a finite cash runway, winding down may be the unpleasant but necessary next step. Privately held companies in this difficult position should weigh the merits of various paths forward with guidance from trusted advisors.  

Available methods have pros and cons:

  • An informal wind-down and dissolution is straightforward but likely not feasible if remaining cash is insufficient to pay back creditors. 
  • Chapter 11 bankruptcy is a formal reorganization process that plays out in court. Often the best route for companies that have substantial operations and face the threat of heavy litigation, this proceeding rarely makes sense for a small company. It is expensive, public, requires court filings and approval for major actions, and takes at a minimum several months to complete. 
  • In a Chapter 7 bankruptcy, a court-appointed trustee administers the asset liquidation. Trustees often lack industry knowledge, incentives to act with urgency, and the ability to operate the business, should doing so for a short period benefit creditors. 
  • foreclosure sale under UCC Article 9, while quicker and cheaper than bankruptcy, may not yield optimal value for the assets, and requires that the lender take responsibility for the sale effort—which they may not have the resources, expertise, or desire to do. 

Enter assignments for the benefit of creditors. An “ABC” is a corporate liquidation process available to an insolvent company that has run out of options. A nimble procedure governed by state statute rather than federal law, ABCs are often an attractive alternative to bankruptcy and other options since they are usually faster, simpler, less expensive, and yield better outcomes. While not suitable for all situations (e.g., a company with highly complex multi-state operations and litigious creditors), an ABC is a recognized proceeding that a board can avail itself of to maximize recovery for creditors and minimize its liability. ABCs have grown in popularity in recent years with venture-backed technology companies and traditional brick-and-mortar firms alike.

Here’s how it works: with consent from its board and shareholders, a distressed company transfers ownership of its assets (technology, inventory, machinery, etc.) to a third-party fiduciary of its choosing—the “Assignee”—through a general assignment agreement. The Assignee then sells the assets in an accelerated timeframe, communicates with stakeholders, distributes remaining cash to creditors, and manages the administrative wind-down of the Company. 

While providing the company’s board members and officers with many of the protections of a bankruptcy proceeding, an ABC can be effectuated at a fraction of the cost. ABCs happen without judicial oversight in many states (California, Massachusetts, Illinois, etc.), enabling Assignees to move quickly. A speedy process maximizes creditors’ recovery, since many acquirers want to pursue, in parallel with their purchase of the assets, a company’s customers and key employees as well—who would likely be off the market if the process were to take too long. The Assignee is able to continue to operate the business, as long as those operations are financially solvent. 

Exploring an ABC makes sense when it becomes clear runway is limited. If the business will be unable to remain a going concern without the closing of a company sale transaction or capital infusion, contingency planning around wind-down options, including ABCs, is prudent.    

When a company approaches insolvency (inability to pay debts as they come due) the board must act with caution since creditors replace shareholders as the primary beneficiaries of any residual value of the business. Directors of an insolvent corporation are exposed to claims from creditors that the directors’ actions harmed enterprise value and thus failed to protect creditors’ interests. If future prospects are limited and ongoing operations would deepen financial troubles, an ABC can be a graceful way to exit and should be considered. 

Who benefits in an ABC?

  • the creditors – since an experienced Assignee is officially working to maximize their recovery. The Assignee can take the assets to market immediately upon ABC launch (as opposed to the three-to-six-week delay in a Chapter 7 bankruptcy), and engage company personnel to assist, thus preserving asset value and institutional knowledge. 
  • the board – since they can minimize their liability by resigning day one of the ABC, and do not face the disclosure requirements (and therefore stigma) of a bankruptcy.
  • the acquirer – since the assets are sold free and clear of liens and related liabilities, and the sale can close quickly—without the need to obtain court approval (in many states).
  • the company’s vendors and customers – since they can start a fresh relationship with the (presumably solvent) asset buyer.

How G2 can help

As a premier financial advisory boutique, G2 helps troubled companies evaluate available options, gain stakeholder buy-in, and implement the best solution. G2’s experience with ABCs and other fiduciary services covers an array of industry sectors and geographies. Our investment banking prowess ensures a professional asset sale process that will yield the highest possible recovery for creditors. G2’s capabilities in special situations span the full range of operational and financial restructuring options available to distressed middle market companies. As an effective tool for both satisfying creditors and allowing stakeholders to exit, an ABC is one such option that a company facing crumbling business prospects may want to consider.

G2 Capital Advisors, a leading middle-market investment banking firm, is pleased to announce the addition of Jim Goodwin to the firm as a Director on the Technology & Business Services (TBS) team. With more than 7 years of experience at Morgan Stanley, Jim brings a wealth of expertise in M&A, debt advisory, and equity advisory transactions to G2.

During his tenure at Morgan Stanley, Jim demonstrated exceptional skill in sourcing, originating, and executing complex financial transactions. His proficiency spans across the Technology & Business Services sector, with a strong focus on education technology and services. Jim’s arrival marks an exciting opportunity for G2 as he will expand the firm’s existing track record and industry relationships in the Education Technology vertical.

Kerri Ford, MD & Practice Leader of Technology and Business Services at G2, comments, “Jim’s connections and proven track record within the Education Technology community and his extensive experience advising technology companies on a full range of M&A, debt and equity solutions will be of great value to our clients and further strengthens our platform.” 

Prior to his career in finance, Jim served with distinction in the United States Marine Corps and has over 10 years in uniform. His leadership roles within the Marine Corps, both domestically and during active deployments to Afghanistan, have instilled in him a deep sense of discipline, strategic thinking, and dedication.

“We are thrilled to welcome Jim to the G2 team,” said Matt Konkle, President at G2 Capital Advisors. “His extensive experience, coupled with his professionalism and leadership qualities, will undoubtedly enhance our capabilities and offerings in the Technology & Business Services sector and the G2 team at large. We look forward to the contributions he will make to our team and our clients.”

A proud alumnus of the University of Chicago Booth School of Business and the United States Naval Academy, Jim’s academic background reflects his commitment to excellence. He currently resides in Carlsbad, CA, with his wife and son, where he will continue to deepen G2’s presence in Southern California. 

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G2 Capital Advisors has recently announced significant developments in its sponsor coverage strategy. The appointment of Dan Almon as Director and promotion of Bridget McGillicuddy within the Sponsor Coverage Group. These strategic decisions underscore G2’s dedication to serving clients effectively and providing top-tier experiences to the financial sponsor community.

With nearly 15 years of experience and a robust track record as an institutional investor supporting middle-market growth companies, Dan brings invaluable expertise to G2. His tenure as Partner and Co-Founder of Prospect Creek Partners, along with previous roles at Mountaingate Capital and Baird Capital, emphasize his deep understanding of the needs and dynamics of the financial sponsor landscape. Moreover, having previously been a client of G2 during their execution of the Vitalyst sale—a portfolio company of Baird Capital—to Alithya, Dan brings a distinct perspective on the firm’s services and capabilities.

“We are delighted to welcome Dan to the Sponsor Coverage team at G2. Our coverage of the sponsor community has long been a vital element to our business model,” said Andrew Keleher. “Dan’s extensive experience, strategic insight, and client-focused approach align seamlessly with G2’s commitment to enhancing relationships and driving business growth.”

Under Andrew’s leadership, Dan will play a pivotal role in supporting the firm’s strategy and expanding its coverage capabilities. His expertise spans various sectors complimentary to G2’s focus areas including technology, tech-enabled services, business services and healthcare services.  

“Dan’s credibility as a former private equity investor, his technical and transaction expertise and his outstanding network of industry relationships in the sponsor community will prove tremendously beneficial to our clients. His collaborative approach to relationship development and experience with G2 as a former client is a perfect match with our team culture.” said Matt Konkle, President of G2. 

In addition to Dan’s appointment, G2 celebrates the promotion of Bridget McGillicuddy within the Sponsor Coverage Group. Bridget’s dedication and exceptional performance have been instrumental in advancing the firm’s sponsor coverage strategy. Her promotion reflects G2’s recognition of her outstanding contributions and prioritization of nurturing talent within the organization.

“Bridget’s promotion is a testament to her work ethic and pursuit of excellence,” said Andrew Keleher. “We are confident that she will continue to excel in her expanded role.”

These strategic moves not only mark a pivotal milestone for the firm but highlight its ongoing pursuit of excellence in serving clients and fostering talent within the organization. G2 is poised to continue delivering exceptional service and tailored solutions to its financial sponsor community with a dedication to driving success and fostering lasting relationships.

Boston, MA – G2 Capital Advisors (G2) proudly announces its recognition as Investment Banking Firm of the Year at the prestigious 18th Annual Turnaround Awards presented by The M&A Advisor. This award celebrates G2’s unwavering client commitment, optimized deal outcomes, and exceptional team—and reaffirms its position as a leader in the industry.

The Turnaround Awards honor the achievements and successes of the leading firms and professionals in the mergers and acquisitions, financing, restructuring, and turnaround communities. G2’s meaningful contributions to over 150 client engagements in 2023 have earned the firm this distinguished title, highlighting its collective expertise in navigating complex financial transactions and restructuring scenarios.

G2 President Matt Konkle expressed his appreciation, stating, “Winning the Investment Banking Firm of the Year Award is a testament to the hard work and dedication of our entire team, who are each relentless in their pursuit of excellence in every aspect of our work.”

Ben Wright, Chief Operating Officer and Head of Restructuring at G2, emphasized the significance of this achievement, saying, “Being recognized as the Investment Banking Firm of the Year is a tremendous distinction. It reflects the energy and experience we bring to each client engagement—enabling innovative problem-solving with an approach rooted in a long-term perspective for maximizing value.

G2 extends its gratitude to The M&A Advisor for this recognition and looks forward to continuing its mission of providing unparalleled service and strategic guidance to clients and industry partners across its four core industries: Consumer & Retail, Industrials & Manufacturing, Technology & Business Services, and Transportation & Logistics.  

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