A recapitalization is an ideal solution for
an owner who wishes to sell a portion of his or her company
for liquidity or estate planning purposes, while retaining
significant equity ownership to participate in the company’s
upside. This structure allows the owner to achieve personal
liquidity without sacrificing operating control of the company
that he or she has painstakingly grown. The owner also gains
FCP as a financial partner to assist with issues of strategic
importance. In addition, FCP eliminates all personal guarantees
tied to the company. FCP has a long history of providing the
capital to grow companies internally as well as through acquisition,
without additional capital contributions from the owner(s)
or management and without diluting their equity ownership.
Perky Pet, Inc.
The recapitalization of Perky Pet allowed
the owners to diversify their personal net worth while still
running the company. With FCP’s backing, Perky Pet completed
two non-dilutive add-on acquisitions and became the largest
manufacturer and distributor of bird feeders and accessories
in North America. FCP also helped address succession planning
issues by providing the owners a path to exit the business
without jeopardizing the health of the company.