Capital restructurings, or recapitalizations, or "recaps", are usually tapped to manage liquidity and succession issues. If your business or industry is having temporary issues, sometimes your senior lender may require you to recap to maintain the loan, or to look for a new lender.
Sometimes a shareholder might decide that he or she wants to sell their shares to the active partner operators, and financing is needed to structure that transaction.
A recap can become important in many instances, including buying out a JV partner, or planning for the next generation of managers to transition into ownership. Skellig Capital Advisors can help to connect your objectives to a viable financial roadmap.