Mufson Howe Hunter, Investment Bankers for Growth

Recapitalizations

Recapitalizations are an alternative to the sale of a business, whereby equity holders of privately-owned companies sell either a minority or majority equity position.  This liquidity option increased in frequency with the emergence of significant numbers of private equity groups focused on middle market opportunities.  Recapitalizations are generally used in situations involving: (i) a need for liquidity by the owner(s) of a business; (ii) the sale of shares held by a partner(s) no longer active in managing the business; or (iii) the purchase of shares from a (typically older) generation of a family held business.  In most instances, the selling equity holders continue to operate their businesses, after selling a minority or majority stake to a private equity group.  Recapitalization transactions have evolved to a large extent to replace the initial public offering (IPO), which has essentially disappeared as a meaningful liquidity alternative for middle market companies.

Among other appropriate functions and services, Mufson Howe Hunter will: