We have met thousands of business owners over the years, both in developing their optimal exit strategies and through our executive conferences. What these meetings make abundantly clear is that many do not understand what M&A can do for them and their companies. It is not simply about selling it to the highest bidder – our team Generational Equity goes far beyond that.
From building strategic partnerships with interested investors, to our Roadmap to Enhancing Value (REV), we help business owners achieve their ambitions in several meaningful ways – not just exit for the optimal price.
That leads onto the topic of this piece: the partial sale of your business. Perhaps you aren’t interested in selling 100% of your company. Fortunately, selling does not need to have an ‘all-or-nothing’ approach. Partial sales have grown in popularity in the middle market as a way to fund overall business growth.
For example, a few years ago we helped create a partial sale structure for the owners of Orbis Logistics, allowing them to retain partial ownership and participate in the future growth of the company by partnering with a platform company funded by a private equity firm. This approach can prove beneficial to company owners lacking the capital to pursue their ambitions in any sector, whether you choose to sell a company asset or a percentage of the business as a whole.
The real benefit of a partial sale is this gives you the capital to grow your business to the level you want to be at. In this situation, an M&A advisory firm would identify buyers that are interested in partnering with you and retain you post-acquisition in a minority ownership role. Once this investor has been located, it will be a case of determining the right deal structure that both parties are happy with, from determining what roles you will take in the company’s direction to the incentives on both sides.
With the right advice and guidance, such as what you’d receive from our skilled dealmakers at Generational Equity, a partial sale can be the perfect win-win scenario. You receive the financial backing you need to expand your business, and the investor can reap the benefits of this growth.
“Owning a business is very stressful, and that is largely due to the fact we want to be successful. But now we have a lot more financial capital behind us that puts a lot of that stress at ease. Not only for me personally, but our employees also – we have the opportunity to grow internally and through other companies.” – Brad Hennrich, Post Transaction Benefits of a Partial Sale
Of course, with every deal structure, there are several positives and negatives compared to other options. As previously mentioned, if you find the right buyer and approach the right team to construct your deal, these strategic partnerships can be a big boost for your company.
Potential benefits include:
However, there can be drawbacks if your deal isn’t structured correctly, particularly post-acquisition. You will likely transition from being the sole decision-maker in your business to working alongside other owners. How successful this change will be depends on your personality and approach to your business – if you feel you would be uncomfortable working with others, a partial sale might not work for you.
As part of Generational Equity’s process, our advisors will have several frank conversations about your goals, preferences and requirements to help find the right buyer and setup the right structure. There are many options available to you, and we make it our aim to find the ideal one for you.
If you are one of the many entrepreneurs in need of capital to fund business growth, a partial sale might be the perfect plan of action. Why not discuss this at one of our executive conferences? These are completely complimentary, and are held regularly across North America. Here, you will not only get a comprehensive guide to the M&A process and advice on building the optimal exit strategy, but the opportunity to discuss your company goals with our experienced team.
These talks will give you a clearer idea about how to fulfil these ambitions, be it through a partial sale, a strategic partnership, a capital infusion or simply exiting your business outright. In just a few short hours, our executive conferences will give you a clearer picture of the future of your business.
Contact our team at Generational Equity today at 972-232-1121 for more information on when we are next in your area.
The information we learn from customers helps us personalize and continually improve your experience at gencm.com. Here are the types of information we gather.
Information You Give Us: We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice. Our computer system protects personal information using advanced firewall technology.
Information from Other Sources: For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Capital Markets LLC may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Capital Markets, L.L.C. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Capital Markets LLC at is office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
INFORMATION ON THIS WEB SITE IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Capital Markets may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Capital Markets does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Capital Markets will be deemed NOT to be confidential. By sending Generational Capital Markets any information or material, you grant Generational Capital Markets an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Capital Markets is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Information Generational Capital Markets publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Capital Markets intends to announce such products, programs or services in your country. Consult a Generational Capital Markets representative for information regarding the products, programs and services which may be available to you.
Generational Capital Markets makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Capital Markets web site, please understand that it is independent from Generational Capital Markets, and that Generational Capital Markets has no control over the content on that web site. In addition, a link to a non-Generational Capital Markets web site does not mean that Generational Capital Markets endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Capital Markets BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Capital Markets.
Honored to win Investment Banking Firm of the Year 3 years running.
Over 50 awards and counting.
Sign up to receive regular email updates, industry-leading insights and details on complimentary M&A executive conferences in your area from our award-winning team
Success, you have been added to our list.