FOLGARES CAPITAL
WE WALK THE TALK.
Folgares Capital is a financial services boutique that has been providing corporate finance and restructuring advisory to Iberian companies since 2003. The firm draws on its managing partner’s professional experience of more than 30 years as a former M&A banker and turnaround executive to provide a diverse range of advisory services to C-suite executives and investors. The firm also takes on interim management assignments, usually in businesses going through financial restructuring or in foreign-owned subsidiaries experiencing some kind of operational reorganization.
WHAT WE DO
FINANCIAL ADVISORY
M&A and
Transaction Services
Folgares Capital advised on numerous M&A transactions, both on the buy-side or as an advisor to the selling party. The former includes assisting executives and management teams in negotiating, structuring and carrying out LBOs and leveraged recapitalizations.
Advising in M&A usually encompasses a varied array of services, from financial modelling and valuation, to negotiation and fund raising of both equity and acquisition finance.
M&A work has been executed across several economic sectors, including industrials, gaming and leisure, water and sewage, TV and radio broadcasting, retailing, construction services and building materials.
We have worked across several European countries, Brazil and Colombia, Saudi Arabia, Angola and Mozambique.
Corporate Valuation
& Litigation Support
Folgares Capital has conducted valuations in a wide range of industries and situations, including in demergers and carve-outs, joint-ventures, fund raising and impairment tests.
In addition, valuations have been carried out to support the issuance of a Fairness Opinion, a common practice in public companies undergoing the sale of a business division or in need to express an opinion on a tender offer for its stock.
Our firm has also been involved in valuation assignments held over the course of dispute resolutions, while acting as an expert advisor or witness in litigation and arbitration processes concerning stock valuation or contract pricing disputes.
Debt Workouts and
Distressed Reorganizations
Over the last 10 years, the firm was involved in a fair amount of workouts and distressed reorganizations of Portuguese SMEs.
Workouts usually involve advising stockholders and incumbent management of privately-held concerns in carrying out financial reorganizations of viable businesses that for some reason overstretched their balance-sheets.
Distressed reorganizations are conducted under bankruptcy protection. In these situations, our role usually covers the preparation and negotiation of the debtor’s reorganization plan with the court-appointed trustee and/or the creditors’ committee, and when applicable, negotiating with impaired creditors the terms for the reinstatement of their claims, which for unsecured claimants usually entails the conversion of claims into convertible notes or new equity.
Distress Investment
In this business area, we are retained by private investors to advise on the acquisition of distressed corporate debt in Portugal.
Our role usually includes strategizing and negotiating the acquisition of fulcrum loans on behalf of investors, as well as assisting investors’ legal counsels in preparing the groundwork to enforce and execute the ensuing debt-to-equity transaction.
In these so-called “loan-to-own” transactions, our experience covers the construction services and building materials sectors, winery and textiles.
Folgares Capital has been retained on several occasions to perform executive mandates on an interim basis.
The scope and length of interim assignments are always case-specific, but such roles usually materialize through the appointment of our partner in charge to a senior position in the business under reorganization and tenures span between 1 and 3 years.
Managerial assignments were taken up in several sectors such as coating and painting, construction services and real estate development in Portugal, and in a commercial airline’s MRO unit in Brazil.