A recapitalization can be an attractive option for business owners. When it isn’t time to sell the whole company or retire, but you wish to take some risk and capital off the table, a recapitalization is the perfect answer. Combining equity and debt, and partnering with private equity, owners can cash out a portion of their ownership, still retain operating control, remove themselves from personal guarantees, and in some cases still retain majority control of their company. Private equity groups are experienced business partners that bring more than just capital to the table. They provide industry, operational, and organizational expertise that can increase the value of a business for its eventual sale down the road. In addition, recapitalization enables the owner to structure creative and beneficial estate tax options.
Click here to view a presentation on recapitalization presented at the MBBI of Wisconsin’s 4th Annual Private Equity Connection event held on December 2, 2014 at the Milwaukee Athletic Club. Tom Kintis was moderator for a panel of four private equity firms that included Chip Grace from May River Capital, Tom Campion from Merit Capital Partners, Matt Lane from GenCap America, and Gretchen Perkins from Huron Capital Partners.