Minority Recapitalization

Business owners regularly face difficult decisions trying to meet both personal and professional financial goals.

Asset Diversification

How can I diversify my assets and protect my wealth without having to sell my company?

Succession Planning

When I am ready to retire, how can I transfer control / ownership to the next generation, whether my children or my trusted management team?

Growth Opportunities

How can I take advantage of new growth opportunities without having to use my personal assets as collateral?

"The seemingly contradictory goals of tax-efficiently monetizing part of the value of the business and remaining in control can often be reconciled through a minority recapitalization."

What is a Minority Recapitalization?

A flexible liquidity solution using debt and/or equity that can be customized to meet the unique needs of a business owner

The sale of 1% - 49% of a company, depending on what's best for the business and its owners

Debt is typically used in conjunction with minority equity to provide additional liquidity (and/or growth capital)

The use of debt can be tax advantageous, allow for more liquidity, and reduce dilution to existing equity owner

A Minority Recapitalization Provides Liquidity Without Giving Up Control

Minority Recapitalization Majority Recapitalization

Minority Recapitalization

Retain ownership control and preserve operational control

Majority Recapitalization

Ownership control transfers to new majority owner

Minority Recapitalization

Obtain partial-liquidity to diversify assets

Majority Recapitalization

More cash to owner at close

Minority Recapitalization

Continue to benefit from the success of the business via a potential future liquidity event

Majority Recapitalization

Less economic participation in future growth of company

Minority Recapitalization

Family members often want to remain active in the business

Majority Recapitalization

Owners less concerned about transitioning control to family members and/or existing management team

Minority Recapitalization

Lower debt / leverage levels

Majority Recapitalization

Less concern about future debt / leverage

Minority Recapitalization

Owners can regain 100% ownership of the company by buying back equity

Majority Recapitalization

Very difficult to regain 100% ownership

Featured Case Studies • Minority Recapitalization

SambaSafety

“Main Street has been an invaluable partner…Without their help and support, not only financially but also strategically, we would not be where we are or have the trajectory that we have today.”

Rich Crawford CEO, SambaSafety

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Spectrio

"Main Street has been a valued partner for Spectrio and instrumental in our ongoing success. They have financed seven add-on acquisitions. This support has allowed management to focus on growing the business."

Aaron Kleinhandler CEO, Spectrio

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Televerde

"Main Street's investment helped elevate several parts of our company that we did not previously have the bandwidth to support. Their operational support allowed us to make a key hire to bolster the executive team and add productive external board members. We even received an introduction to a new customer."

Jim Hooker Founder, Televerde

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CBT Nuggets

"Main Street provided liquidity to achieve my estate planning goals, while allowing me to retain operational control and the right to regain majority equity ownership. They have been true to their word since our initial discussion, have provided valuable insight and resources, and have been the ideal partner for me and CBT Nuggets."

Dan Charbonneau CEO & Owner, CBT Nuggets

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J&J Services

Main Street has provided J&J’s team with a long-term, strategic capital partner that is well aligned with the core values and growth plans for the business, strengthening our focus and ability to execute on future growth opportunities.

John Biles, Jr., CEO, J&J

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"Main Street has provided J&J’s team with a long-term, strategic capital partner that is well aligned with the core values and growth plans for the business, strengthening our focus and ability to execute on future growth opportunities."

- John Biles, Jr., CEO, J&J

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