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recapitalization

 

Definitions from the Web

Recapitalization

Definition:

A recapitalization refers to the process of altering a company's capital structure by changing the mix of debt and equity.

Usage:

Sense 1: Popular usage

Noun: In a recapitalization, a company may issue new shares or borrow money to change its financial structure and improve its financial standing. This is often done to lower the company's debt-to-equity ratio or raise funds for growth.

Example sentence: The struggling company decided to undergo a recapitalization by issuing new shares in order to reduce its debt burden.

Sense 2: Local usage

Noun: In the local business community, recapitalization might refer to the process of obtaining additional funding, usually through debt or private equity, to further develop or expand a company.

Example sentence: The local tech startup underwent recapitalization by securing a substantial loan from a venture capitalist, allowing them to scale their operations.

Related products:

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