An owner recapitalization is ideal for an entrepreneur that wants to sell a majority of their company for diversification, liquidity or estate planning purposes, while continuing to operate their business and retain meaningful equity ownership to participate in the future upside. This structure allows the owner to bring Legacy Ventures alongside them as a financial and strategic partner to accelerate the growth of their business while achieving their personal goals, continuing operational management and eliminating personal guarantees tied to the company. An owner’s earning potential on their equity going forward is often times as much or more than the cash received in the initial recapitalization.
Family Succession Recapitalization
In a family succession recapitalization, Legacy Ventures works with certain family members to acquire the ownership interest of the remaining family members and outside investors at a fair price. Family members that are actively involved in the operations of the business continue to run the company while providing liquidity to the remaining family members. The owners also gain Legacy Ventures as a strong financial partner in pursuing future growth opportunities and the company remains a family-run business with the same values, culture, and history.
Legacy Ventures partners with current management teams to acquire the business they run from the current owner, who may be an entrepreneur, a family or a corporation. The management team contributes meaningful equity to the transaction, allowing them to participate in the future upside, while we provide the majority of the equity to complete the buyout. We work alongside the management team to establish and execute a successful growth strategy.
In a management buy-in, Legacy Ventures partners with an outside manager or team to acquire a business where the manager/team has significant experience relevant to the company. Much of the business’ existing management remains with the company while the new team fills certain critical roles. We provide the majority of the equity to complete the transaction and management participates in the upside of the company through their equity investment.