If you need liquidity but you don’t want to give up your pride and joy – your business – then a majority recapitalization is probably the right choice for you.
Majority recapitalization is for the business owner who wants it all. It’s a lot like having your cake and eating it too – you get the liquidity you need by selling off a majority of your company without losing control.
Here are three reasons why this might be the perfect option for you…
1. You’ve Got Some Life Left in You.
You may have been working at your business for decades and everyone might be pushing you to retire – but that doesn’t mean it’s time to hang it up and move on. Still, you may be a bit tired of the 24/7 life of a business owner and want to take some of the stress off of yourself.
Majority recapitalization gives you the best of both worlds. You can decrease your involvement in the day to day operations of your company without giving up total control.
2. You Don’t Want Your Company Culture to Change.
It happens all of the time. There’s a buyout and that company where everyone loved to work becomes the company where everyone hates to work.
Company culture isn’t just a buzzword. It contributes to productivity and your bottom line. Companies with the best values and engaged employees are often the most successful ones. Plus, if you’re like most small business owners, your employees are like a second family. You don’t want anything to jeopardize how they feel about their work.
If you know you need to scale back the time you spend at your company and you need the liquidity but don’t want to sacrifice your company’s values, then majority recapitalization is the answer. You’ll maintain control over your company culture and you’ll still be the most prominent voice when it comes to any reorganizations or new directions.
3. You Want to Seize an Opportunity.
There are lots of opportunities out there – but the right opportunity doesn’t come by often. If you spot an opportunity to grow your company, you need to take advantage of it before it becomes irrelevant.
To do that, you need growth capital.
Majority recapitalization is a great way to get the capital you need. For a portion of your company, a new investor can breathe new life into your business. Investors not only provide the company with funds, the right investors also provide the company with new ideas that will contribute to future growth. Choose your investor carefully. Pick someone who shares your vision for growth and has the same ideas about corporate culture as you do. You’ll be growing the business together, so make sure you can have a great working relationship with them.