Whether you work with paperwork day-to-day or only occasionally need them, DocHub is here to help you make the most of your document-based tasks. This platform can copy URL in Recapitalization Agreement, facilitate user collaboration and create fillable forms and legally-binding eSignatures. And even better, everything is kept safe with the top safety standards.
With DocHub, you can access these features from any location and using any device.
The technical definition of a recapitalization is a change to the capital structure of a company. In practice, it can mean different things depending on your motivation. Weve broken it down into three types of transactions: a full recapitalization, majority recap, or minority recap. In the first transaction, a recapitalization is essentially an outright sale, where 100% of ownership is transferred to the buyer. We often see this with owners who are ready to retire and exit the business altogether. In many cases, senior management may look to co-invest with the buyer to reap the rewards of future growth. For owners that want to continue to run the company but would like to remove some chips from the table, liquidity is the main motivator behind a recap. For these owners, a majority recap may be their best option. Selling part of the company to an outside buyer allows the owner to diversify their personal wealth and limit their risk in terms of investment. When partnering with a private
