Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Recapitalization
« Back to Glossary IndexCategory: Mergers and Acquisitions
Recapitalization in mergers and acquisitions involves restructuring a company’s capital, typically through a change in its debt-equity mix. This strategic financial maneuver aims to optimize the capital structure, enhance financial flexibility, or achieve specific objectives. Recapitalization may involve issuing new debt, repurchasing shares, or altering the ownership structure to improve the company’s financial health. In M&A, recapitalization can be a tool for unlocking value, managing debt levels, or aligning the capital structure with the company’s strategic goals. It often plays a pivotal role in reshaping the financial profile of a business during the acquisition process.
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