The Private Equity Recapitalization
How it Works
We specialize in creating a liquidity solution for you in the form of a Private Equity Recapitalization (PE Recap). The PE Recap gives us the flexibility to build a transaction around your needs and retain one of the company’s most important assets: you.
In a PE Recap, Long Point will acquire a majority ownership position in your company while you retain substantial equity in the business. Through this structure, we create a financial and strategic partnership to take the company forward.
What are the Benefits?
- You have your own unique set of financial and personal priorities. The PE Recap gives us the flexibility to tailor a transaction to meet those needs. You tell us how much liquidity you need, how much you want to invest in the business, and how much involvement you want to have in the company going forward.
- We will never know your business better than you do. When we invest in your company, we want your experience, your knowledge and your passion working alongside us. A PE Recap positions you to stay involved with the company and maintain the culture that you have worked so hard to build. Depending on your priorities, you can either continue in a full-time leadership role with the company or take a step back and contribute as a board member or advisor.
- The PE Recap provides you with significant liquidity for financial diversification, wealth planning and intergenerational transfers. When designing a transaction, we will work with you and your advisors to find the most tax advantaged structure that best suits your needs.
- Equity Appreciation
- By maintaining equity in the company, you are positioned to reap the rewards of not only your own continued involvement in the business, but also from the focus, discipline and strategic resources that Long Point will bring to bear to take the company to the next level.
- Management Alignment
- As part of Long Point’s investment in your company, we will establish an equity incentive program that will let the management team participate in the rewards of growing the business. Through both a management option pool and performance bonus plan, we will make sure that both the management and ownership teams are aligned around the same objectives. Management and employees will also be able to personally invest alongside you and Long Point as full equity holders in the company.
- Capital to Support Growth
- Whether the need is to fund working capital or complete a strategic acquisition, ready access to capital is key to seizing opportunities for growth. With Long Point’s capital resources and our ability to access the broader capital markets, you and your management team can focus on what you do best: profitably growing your business.