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Frequently Asked Questions

Does Lexington assists companys in Recapitalizations?

Yes. Recapitalizations provide a business owner with the opportunity to sell a portion of the company and diversify their personal wealth while retaining a significant ownership position in their firm, if desired. Through a recapitalization, a portion of an owner’s equity is sold (either on a non-control or majority basis), while maintaining operating and ownership control, if desired. The new partner is typically a private equity group that shares the owner\'s vision for the company and can provide additional resources, including capital and strategic management expertise, to help take the company to a new level.

In any recapitalization, the company must answer many of the same difficult questions and perform many of the same tasks that it would in an acquisition or buyout. Change-of-control buyout transactions often require that an investment bank analyze the company, assign a value and evaluate competing bids, although this may not be required if the owners can agree on a share price. Many management buyouts and leveraged buyouts (MBO’s and LBO’s) involve the recapitalization of a company’s capital structure, usually with equity being substituted for debt.

At Lexington, our professionals help company’s who want to achieve shareholder liquidity, renegotiate financial agreements, and make changes in the ownership structure of the business; arrange credit facilities and/or pursue balance sheet restructurings.