Question:

What does "recapitalization and growth equity investment" really mean?

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I saw the following paragraph in a business magazine and I'm not sure what it means.

"Company A announced it has completed a recapitalization and growth equity investment in Company B. In keeping with Company A's investment approach, the Company B management team will retain a significant ownership stake and continue to run the business going forward."

Is Company A in trouble? Is Company B in trouble?

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2 ANSWERS


  1. a bought some of b to keep b alive, but b has enough of self to not be bought out, and keep running itself


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