In the M&A world, valuation gets most of the attention. But a successful transaction strikes a careful balance across a spectrum of objectives. Immediate liquidity for the seller(s), retention of operational control, protection for key employees and strategic alignment for growth are just some of the factors to consider. A client-focused partnership is the key to achieving the right mix. Let CRI Capital Advisors help you assess your options and chart the right path.
Deciding to Sell Your Business
Deploying Your Capital Strategy
The sale of a company to a strategically aligned, often significantly larger, company in the same or similar industry. For a full liquidity event, a strategic sale can provide strong valuation, excellent liquidity at closing and advancement opportunities for existing employees and managers.
Majority Recapitalization for Liquidity
The sale of more than 50% of a company, often to a private equity group, family office, or similar financial investor, for the purpose of “taking chips off the table”. The seller often achieves solid valuation, substantial personal liquidity at closing, continued day-to-day operational control and participation in the upside growth of the company.
An owner often has family members or children involved in the business that could successfully continue the operations of the company, but do not have the financial resources to allow the owner to exit. Partnering with the right business/financial partner can afford the owner the liquidity to securely transition toward retirement, knowing the business is properly capitalized and poised for continued growth.
A form of acquisition in which the management team acquires all or substantial portion of the company from the owner who desires to recognize a liquidity event and eventually exit the company. The management team often requires a financial/business partner to facilitate the funding necessary to provide the owner with the liquidity required to enable his or her exit from the company.
Majority Recapitalization for Growth
The sale of more than 50% of a company, often to a private equity group, family office, or similar financial investor, for the purpose of restructuring the company’s balance sheet and injecting capital to fund growth initiatives. The owner recognizes no personal liquidity at closing, but retains significant ownership of the company which is now properly capitalized and better positioned to achieve break-out growth.
The sale of less than 50% of a company, often to a private equity group, family office, or similar financial investor, for the purpose of affording the owner a limited liquidity event or providing additional capital for growth initiatives. The owner retains controlling interest, but there are normally restrictions on distributions of cash, purchase/disposition of major assets, etc.