Achieving Value Through Majority Recapitalization

Achieving Value Through Majority Recapitalization Avatar Posted by Exit Promise under Raising Capital
From http://exitpromise.com 168 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.


Sponsored Content


Comments


Written by tiroberts
166 days ago

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



Log in to comment or register here.

Back to Business Contest

Subscribe

Woo-hoo Jackie Purnell: BizSugar "Contributor of Week"

We're VERY excited to welcome our BizSugar "Contributor of the Week" Jackie Purnell and hope you are … More
Editor's Picks

Learn more about workplace accidents on our BizSugar blog.
What can you do about those freaky accidents in the workplace?
Make sure your employees are protected from freaky accidents.
Learn what freaky accidents can do to your health care costs.