Columbia West Capital - Transaction Case Study
Valuation and Recapitalization of New York Pizza Dept.

 

Transaction

  • New York Pizza Dept (“NYPD”) is a Phoenix-based casual dining pizza chain with ten locations throughout Arizona.
  • Two of the three shareholders desired a complete liquidity event, the third shareholder preferred to continue managing the company.

Challenges

  • Frozen credit markets, a rapidly declining restaurant industry and the overall deteriorating economy posed significant barriers to executing a transaction
  • Securing capital for the management buyout of the existing shareholders

Solution

  • CWC delivered a well capitalized, publicly traded, investment company, as an investor to provide both equity and debt capital to execute the management buyout.
  • CWC negotiated a majority stake for the existing management team.
  • Achieved liquidity for the two exiting shareholders by executing a highly attractive transaction for the sellers and management team during one of the most difficult economic environments in history.