GROWTH CAPITAL PARTNERS EXPANDS VALUATION SERVICES PRACTICE

HOUSTON, TX (May 28, 2009) – Growth Capital Partners, L.P. (“GCP”), a Houston-based investment and merchant banking firm, today announced the expansion of its Valuation Services Practice.  This initiative continues GCP’s long history of providing financial advisory services to middle-market companies.  The expanded practice will be headed up by Sean Flinn who brings extensive business valuation experience gained while working for Duff & Phelps, a global financial advisory firm specializing in business valuations for financial reporting and tax purposes.  At Duff & Phelps, Mr. Flinn conducted numerous financial reporting and tax valuations of middle-market companies.

The valuation of a privately held middle-market company requires an advisor with substantial experience, sound judgment, and knowledge of relevant market data.  GCP's long, well respected history in the middle-market combined with its fresh, in-depth knowledge of the private capital markets and middle-market transactions uniquely qualifies and positions the firm to expand its valuation advisory services offerings within that segment of the market.  "We have been working in the middle-market for a long time and have a very good understanding of what drives valuation from a practical perspective; this knowledge base will enable our valuation practice to carefully consider the reasonableness of a valuation conclusion as we draw upon direct, relevant experience" commented David Sargent.

Valuation services are usually required as the result of an event or in the context of long-term strategic planning activities.  Long-term strategic planning can involve transferring a business to a second generation, collateralizing intangible assets, or management incentive and compensation plans.  With entrepreneur-led businesses, the owner’s personal financial planning, such as for gift or estate tax purposes, triggers the need for valuation services.  Of particular interest right now is the effective use of lower company valuations in the transfer of business interests for wealth planning.  With the current depressed valuations in the marketplace, potential changes in tax laws (including the elimination of private company discounts),  and the expectation of rising tax rates, business owners are wisely seeking the advice of both valuation and legal experts to optimize the wealth planning process.  Below are some services GCP’s valuation practice can offer:

Tax Valuations
Legal Disputes
Strategic Corporation Valuations
  • Gift/Estate Tax
  • Charitable Contributions
  • Intra-Family Sale to Trusts
  • Tax/Wealth Planning (GRATs)
  • Divorce
  • Buy-Sell Agreements/Disputes
  • Contractual Disputes
  • Economic Loss
  • Management Succession and Ownership
  • Transfer
  • Intangible Asset Valuations
  • Stock Appreciation Rights
  • ESOP Update Valuation
  • Minority Shareholder Actions
  • Management Compensation
  • Stock Option Plans

About Growth Capital Partners
Since its founding in 1992, Growth Capital Partners has provided financial advisory services to private and public middle-market companies. GCP has completed in excess of 250 transactions, raised more than $1 billion of institutional capital (through private placements of equity, subordinated, and senior debt), and completed M&A transactions with an aggregate value in excess of $4 billion.  Through its GCP affiliate, Southwest Mezzanine Investments (“SMI”), GCP assists clients with subordinated debt with warrants investments.  With $65 million currently under management, SMI seeks to invest $2 to $6 million in middle-market companies that are seeking capital to finance internal growth, add-on acquisitions or to execute a recapitalization.

For additional information on valuation or financial advisory services, please contact us by visiting our Team Page.

Source:  Growth Capital Partners, L.P. member FINRA – SIPC


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