Learn about Recapitalization

Chris Mercer gives good overview of what is called recapitalizations.It´s worth reading if you are planning to sell your company.

Chris says: “The takeaway thought for you is that if you sell your company, while you may receive cash at closing, there is a significant possibility that your company (or the Newco set up to purchase your assets) will have a significantly different capital structure than you had before the sale. This should provide some insight into the bargaining positions taken by private equity investors and mezzanine investors and the realistic limitations faced by individual buyers.”
[tags] coaching, management, recapitalization [/tags]

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