Private Equity Groups Put Their Cards on the Table


(MENAFNEditorial)

Plethora Businesses recently led a highly anticipated workshop this winter at the 2015 M&A Source Expo New Mexico called “PEGS Put their cards on the table”.

The turnout was excellent we had myriad attendees including bankers brokers and other private equity groups from across the country.

The purpose of the panel was to give the audience an inside look at the way Private Equity Groups view investment opportunities. Representatives from each group reviewed a Plethora pitch book and tendered written offers which were presented to the audience and compared side-by-side.

Although the offers varied significantly ($7.7-$15.2M) there was one common thread:

Every proposal contemplated continued involvement from management and/or the selling shareholders.

Continued involvement for a business seller can be a lucrative opportunity for both sides of the transaction.

We find that many business owners are not ready to fully retire but would like to take their “foot off the gas a little” maybe cash out some of their hard earned equity reduce risk exposure and keep a piece for the future of the business.

Private Equity Groups are great candidates for these scenarios. They provide that desired liquidity event removal of personal liabilities and work with management to accelerate growth.  Also they often include employee stock options/incentive pools to motivate key employees.

The goal is to make the piece the seller keeps worth more that the majority they sell today.

If you have considered what a partial sale would look like give us a call.


All conversations are held in confidence. Our team is FINRA licensed. A non-disclosure agreement will be established prior to any material conversations.

 

Please contact Sky at 714-255-8862 or sky@plethorabusinesses.com to set up a meeting.


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