Eu Wants To Prevent The Recapitalization Will Lead To Massive Sales Of Assets ! http://newish.info/199845-eu-wants-to-prevent-the-recapitalization-will-lead-to-massive-sales-of-assets
Crisis: Barnier, Eu Rules Early Recapitalization Of Banks ! http://newish.info/198768-crisis-barnier-eu-rules-early-recapitalization-of-banks
By: Bob Swain
Companies choose to undertake recapitalization transactions to accomplish a myriad of goals, including diversification of debt-to-equity ratios, defense against a hostile takeover, ensuring the lowest possible tax burden, and creating an exit strategy for investors such as venture capitalists. If executed properly by experienced professionals with a keen understanding of the markets and the needs of business and investors, a recapitalization offers tremendous opportunity for companies to advance to the next level of success.
When launching a start-up, companies often accept terms for borrowing money that they might not if their businesses had long track records and unlimited credit options. However, after their companies gain success, either showing steady growth or profits, business owners often opt to embark upon a recapitalization effort to improve liquidity. In most cases, recapitalization lowers a company’s debt-to-equity proportion by exchanging securities with higher risk, and therefore higher interest payments, for new financial instruments that utilize the company’s strong points, such as steady cash flow or a strong customer base, to lower interest pay-outs and overall debt cost.
By using a recapitalization to lower the cost of debt without eliminating that liability altogether, business owners realize more liquidity, or available cash, to operate and expand their companies. Moreover, a recapitalization allows owners to maintain control of their company rather than exhausting the terms of an earlier venture capital agreement and introducing the possibility of a sale or takeover. Especially in a small or mid-sized business, recapitalization offers owners the chance to eliminate personal liability that takes over their net worth and limits their ability to obtain credit for family purposes.
In short, recapitalization offers numerous benefits. Essex Capital Group has more than 47 years of experience in investment banking. For more information about financial options that could fuel the growth of your company, visit http://www.essexcapitalgroup.com/index.html.
Almunia Said The Recapitalization Will Be For Banks ! http://newish.info/147999-almunia-said-the-recapitalization-will-be-for-banks
“And if there is no more difference between utility and uselessness, that is because the financial world is functioning in its excess of optimalization and efficiency, carrying along its own contamination.”: Joseph R. Biden