A recapitalization provides owners with a “private liquidity event” – similar to an initial public offering, but in a private transaction.
The nature of a recapitalization is to provide a partial liquidity event to owners, so they can diversify their net worth, eliminate personal guaranties associated with the company, and retain their operating role in the business. Partnering with Westshore helps provide the necessary insight and resources to double or triple the business through various growth initiatives.
“David Malizia was very instrumental in the recapitalization of United States Environmental Services, LLC. He was our first point of contact in discussing the essence of an acquisition, and he did an excellent job of communicating the structure, the process, and the benefits of a potential transaction and why we should choose him and his firm as our new capital partner. David was a person that my partners and I immediately gravitated to, and we felt that he was a trustworthy and sincere person, which is important in choosing a partner.”
–Barry J. Thibodeaux, Founder & Retired CEO, United States Environmental Services
In an owner recapitalization, Westshore provides an owner with a partial liquidity event, while partnering with them to grow their company under their leadership and Westshore’s capital.
Westshore is culturally connected to business owners, entrepreneurs, and families because we understand what it takes to run and grow a company. We have firsthand experience with the needs and demands of business and the value of reinvesting in people and business processes. We help our companies build an environment that frees up owners to focus on growth, and the results can be astounding. In a recapitalization, Westshore acquires a majority interest of a company from owners, and then partners with them to build the business through internal growth initiatives and acquisitions.
Family Succession Recapitalization
In a family succession recapitalization, Westshore works with a younger generation of a family-owned business to acquire the other family members’ interest at a fair price. This transactional structure is a win-win solution for all stakeholders – with the older generation receiving a lump-sum cash buyout from Westshore and the younger generation gaining operating autonomy over the business with the backing of Westshore. The company remains a family-run business with the same values, culture, and history as in the past.