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The Majority Recap: An Owner's Tool To Keep A Seat At The Table

We often come across successful business owners facing a common dilemma: they are nowhere near retirement age or desiring to exit their business, but they have a need for liquidity, growth capital or other types of support in order to seize opportunities in the market. If this is you, then a majority recap may be the logical choice for you.

What is a Majority Recapitalization?

A majority recapitalization is a transaction whereby a business owner(s) sells a majority interest in the company to an investor to raise cash while maintaining a significant minority ownership stake and continuing to manage the recapitalized business. This may be the right type of transaction if you desire:

  • A liquidity event, but do not want to give up your business

  • Greater operational flexibility by restructuring the company’s balance sheet

  • A partner that can help you build-out your team and bring a new perspective to the table

  • To be less involved in certain mundane day-to-day tasks, while being able to focus on the parts of the business where your time is far more valuable

  • To maintain the company culture that you spent years creating

  • To share the burden of business ownership going forward

If any of these describe your situation, a majority recap may be worth considering. Please feel free to reach out to us directly if you would like to discuss by emailing or calling (281) 719-9332.

How Can Romanchuk & Co. Help?

Selling or buying a business is one of the biggest decisions you will ever make - you don't want to go it alone. We work with you and your team to make sure you continue to focus your efforts on running your business. We help coordinate the entire transaction team – from initial strategy meetings though post-deal integration, we do all we can to help make sure your deal gets across the finish line.


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