Recapitalizations provide liquidity for shareholders seeking to sell the majority of a business, while allowing them to retain operational leadership or work with Summit to bring in a new management team.
Are you looking to realize liquidity and make changes in the ownership of your business? Would you prefer to sell ownership in your company without taking the company public? Do you want to bring in a professional management team to run your company and continue on as a partial owner? Would you like to maintain operational control of your business, but diversify your financial holdings? If any of these situations apply to you, then recapitalization may be the right option.
Business owners may use recapitalization financing to fund ownership transitions in their companies or to sell a majority interest in their firms. A recapitalization transaction may also be viewed as an alternative to an initial public offering or a sale. Through recapitalizations, Summit Partners has helped many business owners sell a significant portion of their holdings and diversify their personal wealth, while continuing to manage and retain ownership of their firms.
Here are some examples:
- Summit's recapitalization of E-TEK Dynamics, Inc., allowed cofounders J.J. and Theresa Pan to diversify their net worth and enlist Summit as an active partner in building a senior management team and expanding the business.
- With a recapitalization from Summit, the founders of Triton Systems, Inc., were able to sell a majority position in the company and also seize growth opportunities in new markets.
- The recapitalization of Jamba! AG provided liquidity to existing corporate shareholders, while allowing the founders to retain operational leadership and gain Summit as a financial partner in pursuing an international growth strategy.
- The owners of EMED Co., Inc., used recapitalization financing from Summit to diversify their holdings and to expand the company’s sales capabilities, thereby establishing a strong U.S. presence.