Owner Recapitalization

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.
Denver, Colorado

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.