Achieving Value Through Majority Recapitalization

Achieving Value Through Majority Recapitalization Avatar Posted by Exit Promise under Raising Capital
From http://exitpromise.com 165 days ago
Made Hot by: deanuk on November 7, 2013 8:34 am
Cash Out and Still Have a Piece of the Pie

Recapitalizations can be used to provide liquidity to owners, refinance the balance sheet or fund future growth initiatives. When the owners sell a majority of the business but still retains some ownership, it is termed a majority recapitalization.

When a company grows to become the business owners’ largest asset, there is often a desire to achieve some liquidity by “taking some chips off the table”. When this is the case, an owner may seek to recapitalize the business by selling a portion of the ownership. The proceeds can be used to invest in other stocks, businesses, assets or securities to diversify the sellers’ finances and decrease risk.


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Comments


Written by tiroberts
164 days ago

Yet, another interesting and informative piece. Thanks for sharing with us.



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