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A recapitalization is a change in a company's capital structure, with different types of transactions based on motivation. There are three types: full recapitalization, majority recap, or minority recap. A full recap is an outright sale where 100% ownership is transferred, often done by owners ready to retire. Majority recaps allow owners to continue running the company while diversifying personal wealth by selling part to an outside buyer. Minority recaps involve selling a minority stake to a private equity firm.