Equity Release Transactions: Where the sale of the entire company is not appropriate or relevant shareholders may wish to release some liquidity from the capital value they have created in the company they own. In the recapitalisation of a company the existing capital and funding structure is re-shaped still, however, leaving some or all of the existing owners of the company as shareholders. The most common form of company recapitalisation is achieved via a partial equity release which allows certain shareholders, both management or institutional investors, to de-risk or exit their investment entirely and to be replaced by other investors. This type of solution is most relevant where:
Where the sale of the entire company is not appropriate or relevant shareholders may wish to release some liquidity from the capital value they have created in the company they own.
In the recapitalisation of a company the existing capital and funding structure is re-shaped still, however, leaving some or all of the existing owners of the company as shareholders.
The most common form of company recapitalisation is achieved via a partial equity release which allows certain shareholders, both management or institutional investors, to de-risk or exit their investment entirely and to be replaced by other investors.
This type of solution is most relevant where:
