Avison Young has agreed a recapitalisation deal that strengthens the company’s financial situation and provides “additional liquidity for growth, sustained profitability and long-term value”.
The transaction with an equity group consisting of the firm’s existing financial partners, employees and principals, is expected to close in October and will deleverage the balance sheet debt-to-EBITDA ratio of less than x3 and reduce debt and preferred equity by nearly 70%.
As part of the transaction, Avison Young’s “key financial partners” have taken a “meaningful common equity ownership position”.
Following completion of the transaction, the firm will “engage in a disciplined strategy of organic expansion and targeted acquisitions”. Avison Young’s focus will be on expanding its client offerings into sectors and markets with strong growth potential, opportunities where client needs are currently underserved and areas where Avison Young can build upon its established leadership and competitive advantages.
Mark E Rose, chair and chief executive officer of Avison Young, said: “We have strong ambitions for Avison Young’s growth and today’s agreement marks an important milestone in helping us achieve them, building on the decisive actions we took two years ago during an unprecedented period of market disruption.
“With a strengthened balance sheet and enhanced liquidity, we now have the financial muscle to accelerate our growth strategy while maintaining our unwavering commitment to client services. I am confident that these factors coupled with the revenue growth we are delivering as well as signs of a general improvement in market fundamentals, we are well positioned to continue to drive long-term growth in profitability and equity value creation for our shareholders and principals.”
