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Recapitalization is a change to a company's capital structure, which can take different forms based on the owner's goals. It’s categorized into three types: full recapitalization, majority recap, and minority recap. A full recap involves a complete sale of the company, often seen when owners retire. In some cases, senior management may co-invest with the buyer for future growth benefits. A majority recap allows owners to retain control while selling part of the business to an outside buyer, enabling them to diversify their personal wealth and mitigate investment risk. This option is particularly appealing for those wishing to maintain operational control while accessing liquidity.