Recapitalize - Meaning, Definition & English Examples
Recapitalize means to change the financial structure of a company by altering its debt and equity mix, often to improve stability or fund growth. It involves restructuring capital without changing ownership.
Definition:
To reorganize a company's capital structure, often by altering debt and equity proportions.
Synonyms:
restructure, reorganize, refinance
Part of Speech:
verb
Antonyms:
liquidate, dissolve
Common Collocations:
recapitalize a company, recapitalize debt, recapitalize the business
Derivatives:
recapitalization, recapitalizing
Usage Tips:
Use "recapitalize" when discussing financial restructuring to improve stability or growth in a business context.
Common Phrases:
"recapitalize the firm, " "strategic recapitalization, " "forced recapitalization"
Etymology:
Derived from Latin "re-" (again) + "capitalis" (of the head or wealth), meaning to adjust capital anew.
Examples:
- 1. The company plans to recapitalize to reduce its debt burden.
- 2. Investors urged the firm to recapitalize for better financial health.
- 3. The bank helped the business recapitalize after losses last year.
- 4. Recapitalizing can prevent bankruptcy by restructuring outstanding obligations.