What is an Equity Recap? Why this structure of the 1980’s and 1990’s is making a comeback as Bob, owner of Zenith Distributors, explores exit alternatives to de-risk his personal finances, address succession issues,…...
Bob has received an appraisal that determines Zenith’s enterprise value is $27.5 million. Out of the blue he receives an offer of $30 million from a much larger strategic player wanting to expand its geographic reach but will not need Bob and other family employees who are also shareholders post closing. Bob is excited about this seemingly generous offer but concerned about succession issues and his fear of missing the excitement of being the center of his world – Zenith has become his identity. What will he do after the sale? John, a friend and mentor who sold his company five years earlier suggest ……..Click here to discover Bob’s decision.
