Private IPO for Middle Market Companies

• Shareholder Liquidity
• Recapitalizations / Refinancings
• Management / Leveraged Buyouts
• Growth Capital

Our innovative deal structure allows founders to gain significant liquidity while maintaining voting control and maximizing ongoing equity ownership. 

Get 100% of the market value for your corporate owned real estate + do a recap all at once!

You can actually do a recap and do a sell and leaseback on your corporate owned real estate to maximize your liquidity event. With a sale leaseback transaction, you get 100% of the market value for your real estate instead of 65 - 70% from a bank. This combo strategy just adds extra capital to your liquidity event.

We find that most of our recap clients own significant amount of real estate.

What's the catch?

No catch, just enter into a NNN Lease with one of our institutional investors at market rates. 

For most businesses they have significant equity tied up in their real estate - it would be a more efficient to take the equity and convert it to cash and re-invest into your business or other income producing assets.

See our Sale Lease Back Funding page for more details. 

When you combine a recapitalization and a Real estate Sale Lease back we are talking massive liquidity events for business owners - while at the same time retaining majority control of their businesses.

When you add both together in such a synergetic way it could equal out to a majority sale - in better words you might get a cash equivalent of selling majority of your business and still retain control. It's the best of both worlds.

1. You do not need to rely on existing financing sources—A minority recapitalization broadens your financing options and will provide more capital than simply relying on existing cash/liquidity and senior debt capacity.  
2. It is customizable—The reasons a shareholder or business might need additional liquidity are as varied as the owners and businesses themselves. A minority recapitalization can be tailored to fit unique requirements and to meet a range of liquidity objectives.  
3. Keep both hands on the wheel—Because liquidity does not come at the price of majority ownership, funding for shareholder consolidation or capital spending does not come at the expense of operational or cultural control.
4. Fund future growth—Growth, achieved organically or through acquisitions, requires capital; and fast growing companies can often outpace their ability to borrow through their usual channels.  A minority recapitalization can help extend a company’s borrowing ability for sustained growth.
5. Less expensive than issuing common equity—The junior capital used to finance a minority recapitalization sits between senior debt and common equity in the form of mezzanine or subordinated debt and/or preferred equity, and can provide a less dilutive, more cost effective and tax efficient structure, as opposed to issuing new common equity.
6. Participate more fully—Remaining, active shareholders can consolidate and maximize their ownership as well as benefit from future value created by the business down the road.    
7. Second bite at the apple—Owners looking to diversify their personal net worth can achieve partial liquidity today, while allowing the remaining equity value to grow prior to a future liquidity event, retirement or sale.
8. Facilitate the transition—When owners decide to step back from the business to transition to a new generation, management or ESOP, a prudent and patient capital structure that works for a diverse set of interests is required. A well-structured recapitalization can enable a smoother handover.
9. Prelude to outright sale—Liquidity can be used to better position a company for an outright sale in the future—financing current growth initiatives or in some cases to pay down older, higher cost debt.
10. Gain a long-term partner—Typically, minority recapitalizations are facilitated by buy-and-hold investors who are able to partner with a company for the long term.

A well-structured minority recapitalization can provide the much-needed infusion of capital where and when companies need it most. Finding the right capital provider who understands your liquidity objectives and can tailor the right structure for you takes time and research. When working with a partner like Crown Star Mergers & Acquisitions, business owners receive a more streamlined due diligence and execution process. In turn, owners can receive the liquidity they need in short order. We are about relationships, not transactions, and would welcome the opportunity to talk to you about how we can help you reach your capital goals.

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This type of deal structure is another very popular minority-controlled deal - whereas a founder retains majority control of his business, but he gets equity growth capital injected into his business to help achieve massive growth.

Founders can also get some liquidity from growth equity, but within reason. This type of funding is to help grow the business. 

The great thing about this is the capital provider will take around 15% - 30% ownership stake in your company and invest tons of equity capital into your business usually $10 - $50 Million. They will also work with you on strategic growth initiatives to help you grow. They will usually have a plan to triple your business in the next 3 - 5 years.

Minority controlled growth equity & minority-controlled recapitalization deals is one of the most popular funding strategies in our current market.