There are many reasons why an owner may want to welcome investors into a business.
These include a desire to realise some of the value once a business has reached a certain size, or to get access to complementary experience, synergies, capital or networks a new partner could bring.
But what if a founder wants to take a step back, to retire from the organisation – can a private equity (PE) transaction accommodate this wish?
The short answer is yes.
PE investors have a great deal of experience in completing transactions where a founder succession plan is an integral part of the new partnership. PE have strong experience in supporting organisational development and access to a broad network including industry experts.
They can assist in finding suitable replacements or supporting existing management in leadership development.
PE investors have a great deal of experience in completing transactions where a founder succession plan is an integral part of the new partnership.
New role
Even if the founder does not wish to retire completely, it is likely a new role can be found within the company for them, under the new PE-appointed leadership. This may allow a founder to transition out of the chief executive role, for example, perhaps returning to another position in the company or at a board level.
Clearwater role
Our role in a transaction when the owner wants to retire is to work on the best deal possible. It is important to be open and proactive in the dialogue with a new potential owner or PE on the motivations on the future role, including a wish to transition out of the company.
We will help facilitate this discussion with the different investors to meet their needs, building trust between the seller and the new owners of a business.
Knowledge
We don't hide behind jargon and complexity. Instead, we aim to open up the black box of M&A, illuminating the path with clear insight, simplifying the process, and delivering valuable information.
Knowledge
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