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, and advise the owners on an appropriate capital structure.

Whatever the goal in recapitalizing a business, our focus is to help our client understand what is needed to achieve his or her goals and to ensure the company is presented in a professional, diligent manner.