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.

Paul Wormley - General Partner

Paul joined Hadley Capital in 2005. He has spent his entire career working with small and emerging companies. Paul grew up in a family business environment and is an owner of his family’s community newspaper business. Paul works with GT Golf Supplies, Pneu-Con, Open Sky Media and Centare. He was the chairman of the board of directors for i-deal Optics, a previous Hadley Capital company.

Paul is an outdoor enthusiast who enjoys fishing, hunting, riding motorbikes, Crossfit and an occasional craft beer. He works closely with a number of non-profit organizations including One Acre Fund and Trout & Salmon Foundation, and serves as chairman of the Finance Committee at his church.

Paul is a graduate of the University of Colorado at Boulder and received an MBA from the Kellogg School of Management at Northwestern University. He and his wife, Rosemary, have three children.