What is a “Leveraged Recapitalization” ?


A private equity group purchases a majority interest in the company from the owner. They refinance the company using debt and an investment by the private equity fund. The owner receives:


• Up to 70%-80% of equity proceeds in cash

• Up to 49% of roll over stock

• Management team remains in place

• No personal guarantees on debt

• Aggressive growth plan going forward

• Exit in three to five years and receive “second bite at the apple”


In addition, our principals often invest in our transactions along with the private equity group and the owner in a leverage recapitalization transaction.

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