Startup Terms Glossary
What is Recapitalization?
Sometimes, companies need to re-organize their debt in order to stabilize the company’s capital structure. This is most often done through a process called recapitalization, which usually is achieved by replacing one type of security for another. Recapitalization is valuable to business owners who wish to liquidate some of their assets without selling their shares in the company.
Recapitalization Examples
Examples of when recapitalization might be utilized include:
- Example 1. During times of financial instability
- Example 2. To increase the price of shares by lowering debt to equity ration
- Example 3. To achieve higher payouts to stockholders
Here’s another web page about recapitalization.
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Ms. Ayub is an attorney licensed to practice in Texas. Before moving to the US, she has a number of years of experience in contract review, analysis and drafting. Ms. Ayub is available to help you with your legal problems, as well as filling LLC and other business entity formation documents. To know more about her practice, please visit https://ayublawfirmpllc.com/.
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Jason H.
Jason has been providing legal insight and business expertise since 2001. He is admitted to both the Virginia Bar and the Texas State Bar, and also proud of his membership to the Fellowship of Ministers and Churches. Having served many people, companies and organizations with legal and business needs, his peers and clients know him to be a high-performing and skilled attorney who genuinely cares about his clients. In addition to being a trusted legal advisor, he is a keen business advisor for executive leadership and senior leadership teams on corporate legal and regulatory matters. His personal mission is to take a genuine interest in his clients, and serve as a primary resource to them.
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For over 20 years, as an attorney and real estate broker, Candace has used her passion for business and real estate to help her clients succeed as business owners, entrepreneurs Realtors, and real estate investors. She and her team go above and beyond to simplify and solve those issues which trouble her clients. From the simple to the complex, she is ready to help. Her experience includes, Real Estate law, Contracts, Business Formation, Business Operating AGreements and Entrepreneurial counseling.
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