Check out the original article, “Private Equity Recapitalization: Sell Your Business Twice!” written by John Carvalho, Co-Founder of www.Divestopedia.com, a brilliant source for M&A advisors and transitioning business owners.

“The most important single central fact about a free market is that no exchange takes place unless both parties benefit.” – Milton Friedman

Many experienced business owners searching for a succession plan have wrestled with the notion of selling their companies, even as they continue to see significant growth ahead of them. Fortunately, there’s an alternative financial technique known as a private equity recapitalization (recap) where business owners can sell a portion of their business to private equity (PE) partners and still have the opportunity for growth.

PE firms can be savvy business partners that bring more than just capital to the table. They also provide industry, operational and organizational expertise, all of which can be used to increase the value of a business. That’s a good thing because if the company’s value increases, a recap also allows owners to profit for a second time when the business is sold again in the future. Let’s take a look at how private equity recapitalization works…[read full article]

Check out the “Private Equity Recapitalization: Sell Your Business Twice!” full article by clicking here.

Want to learn more on this topic?

Here’s your invite to learn how transitioning owners can take advantage of PE Recapitalizations for the upcoming Jan 10 broadcast.

Many business owners think of only two options as it relates to their involvement with their company: they can run it or they can sell it. In reality, there is a middle ground – one that allows them to retain significant ownership in their business and continue setting its direction, all while diversifying their assets to provide greater financial security for their family. It is called a recapitalization transaction and, once educated on its benefits, many owners see it as a pathway for growing their business, preparing for their retirement, and reducing their risk along the way.In this webinar, you’ll learn how private equity firms partner with owners to achieve their ultimate exit strategy through a recapitalization transaction. We’ll use a case study to identify the types of situations where a recapitalization would be applicable and the benefits of this exit strategy.

Learning Objectives

• Understand private equity and how private equity groups work with companies
• Learn the basic mechanics of a recapitalization
• Identify when an owner/company is a candidate for a recapitalization
• Understand when and how to introduce the concept to an owner

Introduction to Private Equity and Defining Recapitalizations [view details]

• Date: January 10 at 1:00 PM ET
• Presenter: Kyle Madden, Partner at KLH Capital
• Cost: Free to attend
• Register now

What is the ‘Exit Solutions Alliance’ Webinar Series about?

Exits fail when advisors think from a siloed perspective. No individual advisor can be a specialist in every component that goes into creating rapid value growth and effective exit strategy. But to become a generalist in all things exit planning so you can look at things from all angles and “do it all yourself” is as faulty as thinking from one lens. Jack of all trades, master of none, right? Instead, subscribe to the 2018 Exit Solutions Alliance Webinar Series to learn the interworkings, techniques, and strategies from across the exit planning ecosystem. This year, the Exit Solutions series will feature Private Equity Growth Expert, Kyle Madden of KLH Capital, sought-after M&A Marketing Strategist, Christine Hollinden of Hollinden Marketers & Strategists, leading peer mentor to CEOs nationwide, Kevin Minton of Chief Executive Boards International, and Serial Entrepreneur & Award-Winning Author, John Warrillow of Value Builder System, among many others. Don’t miss your chance to pick the brain of the experts every month (typically hosted on the second Wednesday of the month). Register now for the upcoming broadcast.

About Exit Planning Institute:

The Exit Planning Institute (EPI) is an education company that provides exit planning education to advisors and middle market business owners.  We view exit planning as a strategy, not an event.

EPI leads the professional services profession with the best industry content, ongoing support, and owner education platform, all of which align with our mission: Change the outcome.

Only 2 out of every 10 businesses that come to market actually sell.  We want to increase the number of saleable businesses.

Only 30% of family businesses successfully transition to the second generation, only 12% transfer to the third, and the success rates diminish from there.  We want to improve those intergenerational transitions.

Of those that succeed in the sale of their business, 75% experience “profound regret” within one year of exiting their business.  We want to understand why and create strategies that achieve profound success, wealth, and satisfaction.

EPI is an education company, powered by an elite community of top advisors and owners, all focused toward creating a valuable, transferable future for the business marketplace.

• Change your outcome.  Learn more at www.Exit-Planning-Institute.org.
• Educate business owners.  Learn more at www.OwnerReadiness.com.
• Become the Advisor of the Future.  Learn more at www.EarnCEPA.com.