A “recap” offers financial security, equity retention, and value gains through deleveraging, accretive add-on deals, and a potential increase in the exit multiple. In addition to capital, seasoned investors provide strategic oversight, acquisition expertise, and other value-maximizing advice.
A sale to, or merger with, a strategic acquirer could provide the highest valuation and broadest transaction possibilities among all liquidity options.
ESOPs allow owners to reward employees by making tax-favored contributions for the company’s employees in the form of company ownership.
An initial public offering enables the company's shareholders to retain equity and provides some liquidity to majority shareholders.