Re-Capitalization of Businesss


In this podcast Mr Soderling tells us about an alternative to selling a business in the form of a recapitalization. This is essentially a partial sale of a business that allows an owner to take a distribution and add capital to take advantage of growth opportunities. It also allows the owners to get paid a second time in five to seven years when the business is bigger and more profitable. This process brings in more capital, a new board of experienced directors and significant new non-financial resources to grow the business and plan for the second sale or exit strategy some years down the road.


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