You'll have a universe of options when
considering your exit strategy. CCG Advisors is
committed to helping you understand all your options
and choosing the one that best suits your personal,
professional and business goals. Our only
preference is that your strategic purpose is achieved.
For the business owner seeking substantial
liquidity, but willing to continue to lead the
business for several years, or for the owner looking
for capital to grow the company, a private equity
recapitalization might be the best fit.
a private equity recapitalization, an institutional
investor, like a private equity group (PEG), acquires
an interest in the company with the agreement that the
owner and his or her team will stay on to grow the
business both organically as well as through
In a recapitalization, the business owner receives
substantial personal liquidity and
diversification for the interest sold. Although
a PEG typically requires a controlling interest, this
strategy allows the business owner to remain a
significant shareholder and continue to be the driving
force behind the company. Also, unlike strategic
buyers, PEG buyers often look to maintain the brands
they acquire, realizing the value in brand recognition
and loyalty of the management, employees and clients.
Therefore, post-transaction, the company will likely
continue to operate under the same brand name.
As financial buyers, PEGs do not want to be involved
in the daily operations of the business, but rather
are looking to contribute capital and other resources
to help leverage the talents of the existing
best-in-class team. The PEG's goal will be to
partner with the business owner to grow the company
over a period of four to seven years, on average, and
then sell it to generate a return to their investors.
Most equity groups have a well-defined strategy as to
the type and size of companies that they invest in,
how they structure their deals and their investment
This deal is often the best choice for an owner who
wishes to get substantial liquidity off the table, yet
keep their brand and their team to grow the business
with continued upside and significantly lower personal
risk. The best candidate companies for a private
equity recapitalization will have a well-thought out
plan in place to grow the business more aggressively.
Recapitalization Frequently Asked Questions →
Private equity investors are absolute experts
at analyzing the strengths and weaknesses of
companies. After all, it is what they do every
day, all day. We can help you to see your
company through their eyes and to underline your
strengths and address any weaknesses your company may
have well in advance of any transaction.
Especially post-recession, there is a wealth of
private equity funding ready to be put to work.
That means that it is a seller's market in the private
equity arena, but only for well-managed,
well-organized, well-prepared companies. We will
provide you with a comprehensive understanding of what
your company is worth and help you learn to analyze
your revenue from all angles. CCG Advisors
maintains relationships with hundreds of private
equity investors and we are constantly monitoring the
market to stay on the cutting edge of industry trends
and opportunities. We will navigate the universe
of private equity buyers and narrow the list to only
those that are an excellent match for helping you
achieve your goals. This will allow you to
remain focused on the day to day realities of your
business and rest assured that your private equity
partner is the right one.
Transaction due diligence with a private equity group
can entangle even the most organized of companies.
We are here to ensure that the process is monitored
full time and creates minimal interruption to your
smoothly running company. Finally, we will
ensure you get every bit of leverage possible during
negotiations with savvy and aggressive private equity