Recapitalization
Content
Definition
Recapitalization is the process of restructuring a company`s debt and equity mixture, often to stabilize a company`s capital structure.
Usage and Context
Recapitalization is the process of restructuring a company’s debt and equity to create a more stable financial base.
Frequently asked questions
- What is the process of recapitalization? Recapitalization restructures a company’s financial base by adjusting its mix of debt and equity to improve stability or meet new objectives.
- What is the difference between restructuring and recap? Restructuring reorganizes a company`s operations, while recapitalization changes its debt or equity mix.
- What is recapitalization of capital assets? Recapitalization restructures a company`s debt and equity mix to strengthen its financial stability.
Benefits
Recapitalization restructures a company`s debt and equity to stabilize its financial foundation.
Conclusion
Recapitalization strengthens a company’s financial position by adjusting its mix of debt and equity.
