Recapitalize: meaning, definitions and examples
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recapitalize
[ ˌriːˈkæpɪtəlaɪz ]
finance, restructuring
To recapitalize means to change the capital structure of a company, often by altering the proportion of debt and equity. This process can involve issuing new shares, repaying debts, or restructuring existing financial obligations to stabilize or improve a business's financial condition. Recapitalization is frequently used as a strategic tool to raise additional capital or to strengthen a company’s balance sheet during financial difficulties.
Synonyms
refinance, reorganize, restructure.
Examples of usage
- The company decided to recapitalize to manage its increasing debts.
- Investors were concerned about the need to recapitalize after the poor financial results.
- The firm successfully recapitalized through a mix of equity offerings and asset sales.
Translations
Translations of the word "recapitalize" in other languages:
🇵🇹 recapitalizar
🇮🇳 पुनर्पूंजीकरण करना
🇩🇪 rekapitalisieren
🇮🇩 rekapitalisasi
🇺🇦 рекапіталізувати
🇵🇱 rekapitalizować
🇯🇵 再資本化する
🇫🇷 recapitaliser
🇪🇸 recapitalizar
🇹🇷 rekapitalizasyon yapmak
🇰🇷 재자본화하다
🇸🇦 إعادة رأس المال
🇨🇿 rekapitalizovat
🇸🇰 rekapitalizovať
🇨🇳 重新资本化
🇸🇮 rekapitalizirati
🇮🇸 endurfjárfesta
🇰🇿 қайта қаржыландыру
🇬🇪 რეკაპიტალიზაცია
🇦🇿 rekapitalizasiya
🇲🇽 recapitalizar
Etymology
The term 'recapitalize' combines the prefix 're-', meaning 'again', with 'capitalize', which in this context refers to endowing something (usually a company) with capital. The word 'capitalize' itself is derived from 'capital', suggesting resources or assets used for business activities. Originally, 'capital' comes from the Latin 'capitale', which relates to the head or source, indicating that it is the principal or most important resource. The use of 'recapitalize' became more prominent in the 1980s and 1990s during significant corporate restructuring and leveraged buyouts. As businesses sought ways to stabilize finances after economic downturns or to leverage investment opportunities, the concept of altering financial structures became critical, thus solidifying 'recapitalize' as an essential term in financial and business lexicons.