Corporate and Stakeholder Advisory

Tetrad Capital Partners’ approach to the advisory business is highly differentiated from either so called "bulge bracket" investment banks, classic blue-chip consulting firms or boutique specialist advisors:

  • Much like a top-tier investment bank the firm advises on a large range of transactions including buy and sell side M&A, financing, restructuring, capital structure advisory and capital raising;
  • Much like a premier management consulting organization the firm advises on corporate strategy and operational turnarounds
  • Much like boutique advisor the firm provides specialist advice and senior attention

However, what sets Tetrad Capital Partners’ apart is its unique ability to:

  • Carry out all the above in an integrated and flawless manner - by virtue of fully grasping the interplay between a business, its balance sheet, the capital markets, its management and stakeholders the firm can maximize the effectiveness of its advice and eliminate the disconnect that can ensue from engagement of specialists focused on their silos
  • Work directly with boards and CEOs in various capacities – either in a traditional sole advisory role or more distinctly, and due to the firm’s range and depth of expertise, act as a central point for program design, coordination of specialist advisors and implementation

The synergistic benefit of Tetrad Capital Partners’ integrated approach is self-evident in the "new normal" where there is increasing uncertainty regarding the economy, intensifying level of competition from emerging markets, and high level of volatility in the capital markets. These combine to heighten the need for a comprehensive and thoughtful approach to many issues that traditionally were the domain of single subject experts.

Tetrad Capital Partners’ approach is particularly potent in restructuring situations given the critical interplay between a company’s capital structure, capital markets, strategy & operations, and stakeholder dynamics - obtaining the right advice in a holistic way is profoundly important for the future value of a firm.

Stages of Distress and Implications

Low
Degree of Distress
High

Stage 1

  • Cash flow or return on investment is declining and is likely unacceptable
    • Typically the key value creation levers are operational and strategic in nature

Stage 2

  • Company is "on the rocks" and is potentially headed for insolvency with its debt covenants under severe pressure
    • As with Stage 1 the underlying business issues need to be addressed but the balance sheet becomes a high priority

Stage 3

  • Company is imminently going to default on its debt and is in discussions with creditors to either avoid a bankruptcy or to agree to a pre-packaged bankruptcy
    • The balance sheet is of utmost concern as the focus of negotiation turns to value re-allocation, however, future value creation potential remains an important factor

Stage 4

  • Company has defaulted and is under protection of bankruptcy law or administrator
    • These discussions are the most difficult as all prior efforts to improve the business or reach an amicable solution have failed and the primary topic of discussion is value recovery

Shareholder’s options

Creditor’s options

 
Tetrad Capital Partners has a unique and systematic approach in such situations which it has applied to companies ranging in value from $20MM to $20Bn – with both public and private entities. TCP's approach has four key elements:

Comprehensive Perspective

TCP's approach explicitly considers key changes that are required and their broad implications across four key issues:

Consistency in the plan

The design and implementation of the restructuring is internally consistent across the four key elements and mutually reinforcing

Our Focus