Staged Liquidity Transactions^®

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A Staged Liquidity Transaction^® gives shareholders the opportunity to sell a portion of their company while still maintaining a significant ownership stake - in essence creating liquidity and risk diversification today, while setting the stage for a second "payday" down the road. These transactions enable business owners to partially cash out of their investment in the business and capitalize on the enormous amount of sweat equity they have contributed over the years.

A Staged Liquidity Transaction^® is very different from a complete sale of the company. The controlling shareholders continue as partners and managers of the company and the new partners are typically members of a private equity group that share the ownership's culture and vision for the future of the business. Unlike strategic acquirers who purchase with a view towards eliminating overhead redundancies, private equity groups prefer more passive or board level involvement and a collaborative relationship with the existing owner and management. As partners, these private equity groups are able to bring opportunities to the company that were not previously available, and can provide guidance and input in order to assist the company with its next level of growth.

More Than Simply Selling Your Business

• Liquidity: Business owners can realize significant personal/family liquidity by selling part of the business and extracting 80% - 90% or more of their company’s current value, while retaining a disproportionate share of the remaining equity.
• Diversification: Avoids the risks of having personal/family wealth tied to a single business enterprise – allows for prudent diversification of your wealth.
• Upside: Entrepreneurs can participate in a "second bite of the apple" in 3 to 5 years by maintaining a meaningful ownership stake (30% or more) – by aggressively growing the business, you can create significant additional wealth.
• Stronger Management: Owners and existing management maintain operational control of the business, and with new partners, focus on accelerated growth. An option program can broaden the equity participation to other tiers of management.
• Solid Partner: A well-capitalized partner with deep pockets and extensive business connections sets the stage for strong growth internally and/or through acquisitions.