Recapitalizations

In structuring a long-term strategic ownership transition plan for a professional design firm, a key consideration is the preservation of voting control of the firm by the existing owners until the time they ultimately retire from the firm.  This presents a challenge for internal ownership transition whereby principals may be reluctant to transfer units of ownership in the firm, for fear of the potential loss of control.

Among the many different ownership transition techniques, firm recapitalizations provide a means for retiring owners to preserve voting control of the firm upon their retirement, while enabling them to divest of their equity ownership.  Recapitalizations enable firms to begin to transition ownership within the firm to the next generation, without the loss of control.

Dannible/McKee and Associates, Ltd. has extensive experience in analyzing whether or not a recapitalization is a viable solution for ownership transition.  Our services include feasibility, design and implementation of corporate or partnership recapitalizations to provide the optimal equity structure for ownership transition.