Published December 15, 2011

Second Bite of the Apple

By Scott Dickes

Hadley Capital has had a lot of success acquiring small businesses in recapitalization transactions. In a recapitalization, the selling owner receives substantial cash at closing and retains a minority equity position. This minority equity position provides the seller with an opportunity to participate in the future success of the business & the proverbial second bite of the apple.

When we acquired Kelatron back in 1999, the selling shareholders kept a portion of the company so that they could share in the continued success of the business. Last month we sold Kelatron and these shareholders received significant proceeds & more like another entire apple than just a second bite.

Hadley Capital has years of demonstrated success acquiring small businesses, improving them, and creating significant equity value upon exit.

If you are a small business owner who would like some liquidity so that all your eggs are not in one basket, and would also like to share in the continued success of your business, call us to talk about a recapitalization of your business. We didn't just fall off the apple truck yesterday.