5 steps – Capital Market Solutions

1. Inject Equity by EXISTING Shareholders

• Increases equity
• Improves capital structure; 𝐷𝑒𝑏𝑡/𝐸𝑞𝑢𝑖𝑡𝑦 ratio reduces

2. Inject NEW MINORITY Equity

• Increases equity by new Shareholders
• Existing Shareholders are diluted but still in control
• Initial Public Offering (IPO)
• Improves capital structure; 𝐷𝑒𝑏𝑡/𝐸𝑞𝑢𝑖𝑡𝑦 ratio improves

3. Inject NEW MAJORITY Equity

• Increases equity by new Shareholders
• Existing Shareholders are diluted; control passes to New Shareholders
• IPO
• Improves capital structure; 𝐷𝑒𝑏𝑡/𝐸𝑞𝑢𝑖𝑡𝑦 ratio improves

4. Sell NON-PRODUCTIVE Assets

• Scale down balance sheet by selling non-productive assets
• Sale proceeds to reduce debt
• Improves capital structure; 𝐷𝑒𝑏𝑡/𝐸𝑞𝑢𝑖𝑡𝑦 ratio improves

5. Liquidate ALL Assets

• Orderly winding down to maximize realisable value of assets => soft landing
• Sale proceeds repay debt in priority over equity

Alternate source of equity injection

Improve Adjusted Working Capital

• Re-invest
• Repay Debt