Published September 02, 2011

Anatomy of a Small Company Recapitalization

By Paul Wormley

I spent today in Minneapolis talking to a couple of business partners in their late-50's. They had two competing goals: (1) decreasing personal risk, while (2) growing their business.

This situation is pretty common. The partners spent 25 years building their business, it is their primary financial asset and they don't want to threaten the golden goose. However, they also have several growth opportunities they want to pursue (unfinished business…) and these require investment & financial expertise.

A recapitalization with Hadley Capital would help them achieve their objectives. They would reduce their personal risk by selling a portion of the business for cash. And by remaining meaningful owners they would benefit substantially from any future growth. They would also benefit from Hadley Capital's experience helping business owners just like them further grow and develop their businesses. We've seen that 1 + 1 can equal a lot more than 2 in these situations.