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Financial Structuring

Dan Dooley from Morris Anderson discussed capital structure issues, focusing on equity (common and preferred stock, options, warrants) and debt (operating and financial leverage, senior and junior secured lenders, bonds, leases, seller notes, owner loans). He explained security interests, cost of capital (7-15% for debt, 20-30% for equity), and the average weighted cost of capital. Dooley highlighted the importance of equity cushion (debt vs. equity ratio) and the impact of financial distress. He detailed debt restructuring, including financial projections, valuation, and debt service, and provided examples of debt conversion and capital stack right-sizing.

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Capital structure, equity capital, debt capital, financial leverage, senior secured lender, junior secured lender, bonds, leases, security interests, cost of capital, EBITDA, debt service, covenants, exit loans, dip loans.

Daniel F. Dooley, CTP is a principal and CEO at MorrisAnderson in Chicago and has a national reputation in turnaround management, operations improvement, debt restructuring and assuming C-level positions for clients. Mr. Dooley is a frequent speaker at industry conferences and a regular published author for industry periodicals. He has served multi-year terms on the board of directors of both the Turnaround Management Association (TMA), for which he served as president of its Chicago chapter, and ABI. Mr. Dooley has planned and implemented significant financial improvements for clients in many industries, including aerospace, agriculture, automotive, capital equipment, distribution, food, health care, metals, oil and gas, restaurants and transportation. Prior to joining MorrisAnderson in 1997, he served as an executive with several Fortune 500 manufacturers, including Illinois Tool Works (ITW), an industrial manufacturer, and Allied Signal, an automotive electronics and aerospace manufacturer. He has served on board of directors and been a key advisor to small and large corporations and nonprofit organizations. Mr. Dooley has successfully managed numerous projects for middle-market companies and assumed dozens of interim-management positions as an independent director, CEO, CRO and CFO for client companies nationwide. During his career, he has negotiated numerous transactions involving debt-restructuring, supplier accommodations and business sales. Mr. Dooley specializes in the development and implementation of cost-reduction and restructuring plans, as well as restructuring negotiations between companies and their creditors. He educates company ownership and management on realistic business plans, implementation of cost and liquidity improvements, and effective end-game strategies for clients. He also collaborates with management on issues related to turnaround, restructuring plans and business sales. Mr. Dooley has achieved results for companies in the automotive, aerospace, agriculture, capital equipment, metals, health care, transportation, food, distribution, oil and gas, and real estate industries. He is also a contributing author to The Chief Restructuring Officer’s Guide to Bankruptcy: Views fom Leading Insolvency Professionals (ABI 2013). Mr. Dooley received his B.B.A. and M.B.A. in finance from the University of Minnesota Carlson School of Management.

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