In essence a Recap transaction allows ownership to "take chips off the table" and provide for the opportunity to participate in the future growth of the company. This type of a transaction is the result of a private investor or a private equity group acquiring a minority or controlling interest in the company, and providing liquidity to ownership and the capital for internal growth and add-on acquisitions.

A Recap can provide the following benefits to ownership:

• Substantial cash payment to ownership
• Elimination of personal guarantees on bank loans
• Allows ownership to maintain a leadership role
• Provides for a strong partner/investor with capital to fund the future
  growth of the company
• Provides capital for add-on acquisitions
• Can facilitate family estate considerations
  
  

Kensington can facilitate a Recap transaction by:

• Developing a strategy that identifies potential Recap investors
• Generating multiple proposals from interested investors
• Assisting ownership in selecting the "best-fit" investor
• Managing the deal negotiations that result in meeting the financial and personal needs of our client