Darken light in the Recapitalization Agreement effortlessly

Aug 6th, 2022
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How to Darken light in the Recapitalization Agreement

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hello i'm kent holland it is a pleasure to be with you today i am the founder and principal of construction risk llc and i am presenting this workshop today on behalf of aepronet and this is entitled indemnification negotiating a reasonable clause the first thing i'd like to do is just put up on a slide here an example of a typical clause that we might find for indemnification in a design professional contract and then i'm going to break this clause down and show you how we would recommend to our clients that they redline this to make these changes to make it more insurable this started off by saying that you're going to defend indemnify and protect you're also going to save harmless the owner and its agents and representatives now what we'll do is let's look at revising the first few lines add a parenthetical saying except against professional liability claims with regard to defend because there's no professional liability coverage for that defense obligation well we leave the word d...

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A corporate recapitalization can freeze the value of the owners stock, potentially reducing the owners estate tax liability by removing future appreciation in the value of stock from the owners estate.
Consequently, a recapitalization is only good news for investors willing to take the special dividend and run, or in those cases where it is a prelude to a deal that is actually worthy of the debt load and the risks it brings. (To learn more, see Evaluating a Companys Capital Structure.)
Consequently, a recapitalization is only good news for investors willing to take the special dividend and run, or in those cases where it is a prelude to a deal that is actually worthy of the debt load and the risks it brings. (To learn more, see Evaluating a Companys Capital Structure.)
What is Recapitalization? Recapitalization is a financial strategy of readjustment of a companys capital structure by exchanging one type of financing for other. It is generally done with an objective of optimizing leverage and stabilizing the capital finance structure.
Definition: A Recapitalization or Recap is a financing technique used typically by private equity investors to invest in privately-held businesses that allow the existing owner to restructure the debt and equity of their company to either obtain new capital for future business growth and/or to reduce their personal
In an equity recapitalization, a company issues new equity shares in order to raise money to be used to buy back debt securities. The move can benefit companies that have a high debt-to-equity ratio. A high debt-to-equity ratio puts an additional burden on a company, as it must pay interest on its debt securities.
Very briefly, in a fund recapitalization, a sponsor sells some or all of its investment in one or more portfolio companies to a continuation vehicle that is managed by the same sponsor, but capitalized by a new investor base.
Private equity recapitalization is a financing technique that helps you, as a business owner, sell your business twice: once when you sell your partial business stake to the private equity partner/group, and the second time when the private equity group sells your entire business.
Recapitalization methods: Additional payment to equity. Debt to equity. Non-cash contribution to equity. Conditional capital reduction.
Recapitalization methods: Additional payment to equity. Debt to equity. Non-cash contribution to equity. Conditional capital reduction.

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