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A recapitalization strategy is the transfer of company ownership, typically to relatives, employees, management or others. It provides the seller with cash needed to exit while leaving the business in the hands of people who will ensure its legacy and continuity. A planned recapitalization succession transaction can optimize owner economics and buyer opportunities.

Oak Street Funding helps existing owners make well deserved financial exits while positioning future owners for long-term success. Our succession and recapitalization loans allow incoming owners to borrow funds against future cash flows.

A Phased Approach

Proceeds from a succession/recapitalization loan are used by incoming ownership to begin repurchasing the existing owner’s membership interests or stock using a treasury stock approach. Equity is redistributed among succession owners. The loan can be structured as a one-time event or a multiple year transaction and buy-out. As a non-SBA lender, we have the flexibility to work with you to create a customized succession plan. Here is an example, for illustration purposes only*:

*Based on third-party annual valuation formula and annual loan proceeds tranche. The annual valuation gives opportunity for the seller to derive benefit from the results of the next two years of business production. Buyer, valuation and purchase similar to “dollar cost averaging”. Oak Street Funding does not provide any valuation. Subject to terms and conditions of loan documents being met over payout period.


Get Started: A Succession and Recapitalization Loan from Oak Street Funding can offer new possibilities for sellers, buyers and employees.

Owner Advantages

  • Creates liquidity for owner
  • Allows exiting owner to participate in agency’s increasing value
  • Gives owner a say in succession/leadership
  • Delivers environment where owner can stay engaged as long as is preferred
  • Creates opportunity for taxes to be strategically managed

Successor Advantages

  • Creates ability to secure a business loan that might not otherwise be possible
  • Uses business profits to pay off the note instead of personal assets
  • Delivers environment where owner can stay engaged as long as is preferred
  • Can aid in employee retention as employees are more likely stay if operations remain consistent

MGA/Broker Loan Resources

Succession Leadership Roadmap

He’s a great employee with a good head for business. You’ve hired well over the years, but he really stands out. As you watch him deal with your clients and analyze his numbers, you’re confident that, when the time is right, he’ll be ready to take your business’s...

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Planning Success

You’ve heard it a thousand times….if you fail to plan, you plan to fail. While cliché, it’s proven and still many businesses and even more individuals fail to plan. Planning is not only about defining a destination but planning in business equals results. Results...

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MGA/Broker Events


  • WSIA Leadership & Underwriting 
    April 11-14, AZ
  • Target Markets (Spring)
    May 7-9, MD
  • WSIA Annual Marketplace
    September 23-26, GA
  • Target Markets (Fall)
    October 22-24, AZ

Learn More

To learn more about financing options for your business, please contact one of our knowledgable experts. We can answer any questions you may have, and suggest the best route for moving forward.

Email us below to begin the conversation.

Rick Maldonado

"Industry knowledge was definitely an advantage to working with Oak Street. I'm more of a global conceptual person and I felt that start to finish it was well done. The niche you serve shows there's a lot of gray area but you explained things well."

Christian J. Henrich, Esq.

"What impresses me most about Oak Street is their fairness and willingness to creatively go the extra mile to ensure deals close. For example, all deal professionals have had to contend with the recalcitrant junior creditor that threatens to break a deal. Oak Street will listen, engage, and work harder than any senior lender in my experience to ensure that junior creditor does not hold the deal hostage. They are truly the borrower's partner."

Who we are...

John Ridgway

"Extremely professional and courteous staff. From our first discussion through settlement, the responsiveness and thoroughness was fantastic. Your staff made this a great experience. Plan on recommending your firm to agents looking for funding because of my positive experience."

Have questions? Talk with our experts for more information.