The VC Experts' Buzz

LBO Primer: Recapitalizations

By Joseph W. Bartlett, Of Counsel, Sullivan & Worcester LLP, 02/22/2012

Recapitalizations accomplish several of the purposes of a leveraged buyout except for an entire change in ownership. Thus, existing shareholders retain a share of the value inherent in the leveraging process the upside potential when, as and if acquisition debt is paid down from post-closing cash flows and asset sales.

Read more in this week's Buzz, LBO Primer: Recapitalizations

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