We help businesses modify their capital structure in a beneficiary way to take advantage of market opportunities or anticipated changes in the company.
Today there are more recapitalization options for a business than ever before. With a vast amount of available private equity dry powder and available bank and non-bank financing options, a company may pursue a variety of different recapitalization structures. A debt-only recap, minority equity investment, or majority recapitalization are a few possibilities that help achieve growth capital, shareholder liquidity, family succession, management buyouts, balance sheet restructuring, or just more favorable debt terms.
For a majority recapitalization, the most popular transaction structure for businesses today, there are many benefits to the current ownership including:
- Upfront liquidity
- Elimination of personal debt guarantees
- Risk reduction, wealth diversification
- Capital for growth
- Retention of a meaningful equity stake in the company
- Continued ability to lead and manage the company
- Participation in a second liquidity event at a higher valuation
These deals can be complicated transactions and require the experience and expertise our team has developed over the years. We will provide straight-forward answers and expert guidance throughout the entire process – from the internal negotiations among stakeholders to the often complicated logistics of closing the deal.