Equita takes over 70% of Cap: stronger in debt advisory

Equita has signed a binding agreement to acquire from co-founders Fabrizio Viola, Fabio Cassi and Matteo Pattavina 70% of Cap Advisory, an independent corporate finance "boutique" with a strong specialisation in debt advisory. This was announced in a press release issued by the buyer, which specifies that thanks to this transaction the group "significantly strengthens the skills of the investment banking division in the world of debt, particularly in the areas of restructuring, redefinition and consolidation of the financial structure of companies. Furthermore, the partnership is highly strategic due to the strong complementarity in terms of clients and services offered with potential cross-selling opportunities with the Equita group's client network, which aims to consolidate its role as a leading independent investment bank alongside entrepreneurs, companies and financial institutions".

The consideration for the transaction will be determined on the basis of a price-to-earnings multiple of 9 times, applicable to Cap Advisory's average adjusted net profit for the three-year period 2022-2024; considering the average results of the last three public financial years (the one for 2024 has yet to be approved and filed), it should be a figure not far from a range between EUR 5 and 6 million. The sum will be paid at the closing with a combination of cash (two-thirds) and Equita treasury shares (one-third). The remaining 30% will be settled through put & call options exercisable from June 2028.

The transaction consolidates the collaboration with Fabrizio Viola (already Equita's senior advisor and part of the shareholders' agreement between managers) and allows Fabio Cassi (managing director of Cap Advisory) to join the group, 'who will also be appointed senior advisor and will adhere to the group's shareholders' agreement between managers. Viola and Cassi will retain their current positions at Cap Advisory," Equita concluded. The transaction is expected to close in the first half of 2025. "Thanks also to the other investments completed in recent years," explains Andrea Vismara, CEO of Equita, "today we can boast a team of primary standing in Debt capital markets, Debt advisory and Debt restructuring, and we are positioned as one of the leading advisors in Italy on this front as well. Equita's ability to establish successful partnerships with realities complementary to our own,' he added, 'will allow us to create further value for our shareholders, as we have already done in the past with K Finance, today Equita Mid Cap Advisory, and as we are doing now with Sensible Capital, today Equita Real Estate'.