Private Equity Recapitalization: How it Works

Private Equity Recapitalization: How it Works

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Mike O’Neill is the director at Stone Arch Capital. Stone Arch is a mid-market, mid-western based private equity firm. I met Mike on a panel, during which he gave a very clear and articulate explanation of how the “second bite of the apple” works for companies who work with private equity firms.

Today, Mike and I discuss why business owners choose to work with a private equity firm. He also gives us some insight into how it works from the firm’s side of the deal. Mike covers who Stone Arch serves, what they offer to their clients. He also touches on how the firm gets their money and what Stone Arch considers before they enter into a deal.

You will learn about:

  • Mike’s background in family business.
  • How he got involved in private equity.
  • Who Stone Arch serves and what they offer them.
  • Private equity customers are the investors.
  • How Stone Arch calculates the value of your business.
  • The importance of maintaining a positive relationship.
  • The 3 reasons people seek out private equity firms.
  • Establishing expectations on both sides of the partnership.
  • Why Stone Arch consults market experts before moving forward.
  • The process of “getting the second bite.”
  • The 3 levers that every business needs to pull to make their private equity deal work.
  • The importance of working with the right people.
  • Being in the business of creating goodwill.
  • Mike’s final advice for my listeners.


Planning an exit involves so many decisions. It is important that you research and are aware of all of your options. There is so much to think about that it is okay to seek out advice and counsel. Private equity is an option and it is a lucrative option, but consider everything before you are completely committed.

Links and Resources

Mike on LinkedIn
Stone Arch Capital
GEXP Collaborative

About Mike:

Michael O’Neill joined Stone Arch Capital in 2008. His primary responsibilities include sourcing, reviewing and structuring new investment opportunities for the firm. He also has experience in add-on acquisitions, debt and equity financing and supporting investment management activities from the board level.

Prior to joining Stone Arch Capital in 2008, Michael was an investment banker at Lazard Middle Market. While at Lazard Middle Market, Michael focused on mergers and acquisitions transactions within a variety of industries, including industrial products, oil and gas services, business services, food and agriculture, and technology.

Mike lives in Edina with his wife, son, daughter and dog. In his spare time, he enjoys running, drinking local beer, and letting the Iowa Hawkeyes get his hopes up.

Michael is a graduate of the University of St. Thomas (B.A. in Finance and History) and the Samuel Curtis Johnson Graduate School of Management at Cornell University (M.B.A.).