

A private equity recapitalization allows a business owner to sell part of the
company while maintaining a continued ownership position.
A private equity group is an investor or group of investors who typically
invest in privately held companies. They generally seek to partner with some
or all of the existing management team. They generally purchase more than
51% to secure control, but there are firms who focus on purchases of
minority positions.
Key benefits of a private equity recapitalization include funding expansion
of the business, diversifying investments in areas outside the business,
removal of personal guarantees, peace of mind, or diversification
- “taking some chips off the table.”
The owner is able to take some cash out of the business and retain
ownership and decision-making ability going forward. Private equity firms
typically seek to grow the company over a three to five year period and then exit.
Learn how VERCOR successfully facilitated a private equity recapitalization.
![]()
Vercor Home | Legal | Our Process | Why Use an Investment Banker? | Mission & Values | FAQs
Services | Business Sale | Pre-Sale Business Planning | Determining Business Value | Private Equity Recapitalization | Mergers & Acquisitions
Management Buyout | Investment Banking | Team | Our Professionals | Our Offices
Past Deals | Transactions | Case Histories | Testimonials
Publications | The Business Sale | Enhancing Your Business Value | The M&A Front
Contact Us | Partner Login