We succeed by building strong relationships with our clients, identifying their best strategic options, and delivering results.
©2006 Grace Matthews

Recapitalizations

A recapitalization provides an opportunity for business owners to realize liquidity with continued partial ownership of the company or, alternatively, to restructure the balance sheet of their company in order to achieve greater operational flexibility.

The shareholders of a more established business may want to partially "cash out" for estate planning or other private reasons, but without selling the company outright or causing a major disruption to the business.   A recapitalization allows shareholders to realize liquidity yet maintain a partial ownership stake, thereby getting a second bite at the apple with the ability to participate in the future growth of the company.

In other situations, an owner of a fast-growing company may need access to capital to take advantage of quickly changing markets or technologies. 

In these and other similar situations, Grace Matthews works with owners and shareholders on a strategy that best meets their needs.  If the goal is to generate liquidity, we work to develop a thorough understanding of the risk profile and cash flows of the business, advise the owners on an appropriate capital structure, and then negotiate the best terms with potential lenders or other financing sources. 

If new capital is needed to support growth, we have extensive contacts within the private equity and banking communities to ensure that our client receives the best pricing and terms.

Whatever the goal in recapitalizing a business, our focus is to find the right partners for our clients:  partners who are looking not for just a short-term relationship, but who are willing to commit to support the company’s long-term vision for growth.

 

Case Studies