The Private IPO^® is a minority-equity recapitalization program that seeks to resolve an owner’s competing financial and personal demands by providing liquidity to all shareholders, access to new capital for growth, and continued operating control, while forging a strategic partnership to maximize the firm’s long term potential.  

In a typical Private IPO^® transaction, Heritage takes an equity position in the company via a substantial investment in common and preferred stock, while simultaneously leveraging the company with a modest amount of senior and sometimes subordinated third-party debt. A successful Private IPO^® transaction allows selling shareholders to “cash out” up to 85% of the current value of the business, while retaining a 50% economic stake in the business going forward – providing a strong incentive for those who believe in the future of their business to opt for The Private IPO^® over other traditional means to liquidity such as an outright sale or a public equity offering. Further, The Private IPO^® achieves an estate freeze under Chapter 14 of the Internal Revenue Code, which allows a founder to pass on the future value of the company to his heirs, estate tax free.