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A leverage recapitalization is a partial sale of a business. For example, if a business generates $5 million and is valued at a 6x multiple, its worth is $30 million with no debt, resulting in $30 million in equity. To obtain this amount, the plan is to acquire $22 million in cash and $8 million in stock. The financing sources will significantly influence ownership structure. In this scenario, a private equity group and a bank will fund the $22 million, with the bank providing a $13 million loan and the private equity group contributing $9 million. No additional fees are included to simplify the calculations.