Lincolnshire Management will certainly do these things because they have to do their job and act as mechanics within the business sector, they have to look at companies that are not performing well, or performing well but could do better and help them get to an optimal state.
One of these tools at the disposal of Lincolnshire Management is that of recapitalization. Recapitalization is a method where the private equity firm will look at the capital structure of a company and conduct a surgical reorganization. This surgical reorganization done by a firm such as Lincolnshire Management will have a large impact on the company. The reasons that a firm like Lincolnshire Management will be doing so will vary. But one may expect that the equity in the firm is transferred and debt becomes the replacement, it may even occur the other way around. Lincolnshire Management knows that a deal may not always be so simple, the surgical procedures may become a bit more complex and they will have to look at items such as mezzanine financing and other mechanisms within the surgical recapitalization process.
Mezzanine financing involves a mixture of both instruments (debt and equity) to conduct proper financing for the company. Recapitalizations can be very interesting, one can quite likely see recapitalizations transfer control and ownership to a different party and see that the recapitalization can result in bond offerings, share price boosts, utilizing excess cash for good use, as a financial shield, a reprioritization, and overall bolstering in different areas of the company.
There is not much news on the different actions that were taken by Lincolnshire Management when they worked with Holley Performance Products. The past history does not necessarily show that different recapitalizations were conducted on the company. The Lincolnshire Management team was able to see the different complexities within the business, the different layers, the different nuances, and other aspects of the business that has seen issues in the past.
Over the course of their time with the performance company, Lincolnshire Management has been able to look at the market, the products, and the consumers since the first day. The growth strategies paid off, they saw an increase in revenues and earnings as well.
See Lincolnshire Management company profile here https://pitchbook.com/profiles/investor/10059-85