RECAPITALIZE Meaning and
Definition
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Recapitalize is a verb that refers to the act of restructuring the capitalization of a company or organization. It involves modifying its financial structure by adjusting its mix of debt and equity. Usually, recapitalization occurs when a company faces financial challenges and needs to strengthen its balance sheet or improve its financial position.
This process may involve several actions such as issuing new debt or equity securities, redeeming outstanding shares, altering the capital structure, or changing ownership interests. The aim of recapitalization is typically to improve the company's financial stability, enhance liquidity, reduce debt burdens, or increase shareholder value.
Companies may choose to recapitalize for various reasons, such as to fund expansionary initiatives, acquire new businesses, restructure existing debt obligations, consolidate ownership, comply with regulatory requirements, respond to market changes, or respond to financial distress.
Recapitalization can take different forms, including debt-for-equity swaps, stock repurchases, rights offerings, or the issuance of new shares. Each method has its own implications for the company's shareholders and existing capital structure. Recapitalization often involves consultation with financial advisors, investment banks, or legal professionals to navigate the complexities associated with modifying a company's financial structure.
Overall, recapitalization is a strategic financial maneuver undertaken by companies to readjust their capitalization and improve their financial situation, thus aiming to achieve stability, growth, and enhanced value.
Common Misspellings for RECAPITALIZE
Etymology of RECAPITALIZE
The word "recapitalize" is derived from a combination of two words: "re" and "capitalize".
The prefix "re-" in English is generally used to indicate repetition or intensification. In this case, it signifies repeating or doing something again in relation to the act of capitalization.
The word "capitalize" originates from the Latin word "caput", meaning "head". In medieval Latin, it evolved to "capitale", referring to "stock or property". Eventually, it entered English in the 18th century and came to mean "to provide with capital" or "to convert to capital".
Thus, when you combine these two words, "recapitalize" literally means to provide with capital again or to convert into capital again. It is commonly used in finance and business contexts to describe the process of increasing a company's capital by issuing additional shares or obtaining additional funding.
Conjugate verb Recapitalize
CONDITIONAL
I
would recapitalize
you
would recapitalize
he/she/it
would recapitalize
we
would recapitalize
they
would recapitalize
CONDITIONAL CONTINUOUS
I
would be recapitalizing
you
would be recapitalizing
he/she/it
would be recapitalizing
we
would be recapitalizing
they
would be recapitalizing
CONDITIONAL PERFECT
I
would have recapitalize
you
would have recapitalize
he/she/it
would have recapitalize
we
would have recapitalize
they
would have recapitalize
CONDITIONAL PERFECT CONTINUOUS
I
would have been recapitalizing
you
would have been recapitalizing
he/she/it
would have been recapitalizing
we
would have been recapitalizing
they
would have been recapitalizing
FUTURE
I
will recapitalize
you
will recapitalize
he/she/it
will recapitalize
we
will recapitalize
they
will recapitalize
FUTURE CONTINUOUS
I
will be recapitalizing
you
will be recapitalizing
he/she/it
will be recapitalizing
we
will be recapitalizing
they
will be recapitalizing
FUTURE PERFECT
I
will have recapitalized
you
will have recapitalized
he/she/it
will have recapitalized
we
will have recapitalized
they
will have recapitalized
FUTURE PERFECT CONTINUOUS
I
will have been recapitalizing
you
will have been recapitalizing
he/she/it
will have been recapitalizing
we
will have been recapitalizing
they
will have been recapitalizing
IMPERATIVE
you
recapitalize
we
let´s recapitalize
to recapitalize
PAST
I
recapitalized
you
recapitalized
he/she/it
recapitalized
we
recapitalized
they
recapitalized
PAST CONTINUOUS
I
was recapitalizing
you
were recapitalizing
he/she/it
was recapitalizing
we
were recapitalizing
they
were recapitalizing
PAST PARTICIPLE
recapitalized
PAST PERFECT
I
had recapitalized
you
had recapitalized
he/she/it
had recapitalized
we
had recapitalized
they
had recapitalized
PAST PERFECT CONTINUOUS
I
had been recapitalizing
you
had been recapitalizing
he/she/it
had been recapitalizing
we
had been recapitalizing
they
had been recapitalizing
PRESENT
I
recapitalize
you
recapitalize
he/she/it
recapitalizes
we
recapitalize
they
recapitalize
PRESENT CONTINUOUS
I
am recapitalizing
you
are recapitalizing
he/she/it
is recapitalizing
we
are recapitalizing
they
are recapitalizing
PRESENT PARTICIPLE
recapitalizing
PRESENT PERFECT
I
have recapitalized
you
have recapitalized
he/she/it
has recapitalized
we
have recapitalized
they
have recapitalized
PRESENT PERFECT CONTINUOUS
I
have been recapitalizing
you
have been recapitalizing
he/she/it
has been recapitalizing
we
have been recapitalizing
they
have been recapitalizing
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