The founder wanted real liquidity but was years from done. A process built for partner fit, not just price, recapitalized the company at $50M to $70M with meaningful rollover.
Request a Confidential ValuationThe founder had built something with years of growth still ahead, but most of his net worth was locked in the company and he had never taken a dollar off the table. A full sale was wrong, because he was not done. A simple minority round would not give him the liquidity he needed. He needed a partner who would buy a majority, let him keep running and keep meaningful ownership, and back the next phase rather than strip it for margin.
We ran a process built for fit, not just price. Sponsors were screened on how they treat founders who stay, their posture on reinvestment versus cost-cutting, and the terms of the equity the founder would roll. Price mattered, but a recapitalization is a marriage, and the wrong high bid is worse than the right one a turn lower.
The company recapitalized at $50M to $70M with a growth-equity partner. The founder took substantial liquidity, rolled meaningful equity into the next phase, and kept operational control. The best outcome was not the largest check. It was the partner who made the second bite worth more than the first.
A recapitalization is a partnership, not an exit. The highest bid can be the wrong one when the founder is staying; the terms of the equity you roll and the partner you keep decide the second bite.
Details that could identify the company have been altered or withheld. Transaction details are representative of engagements of this type. Quotes are representative. References available to qualified parties under non-disclosure agreement.
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