Justin Lipman’s Post

Over the next three days, I will be covering the key aspects, benefits, and process of the majority recapitalization structure. This is the most common transaction type in lower mid-market M&A deals which involves restructuring a company's capital structure by selling a majority stake (more than 50%) to an external investor, such as a private equity firm, while the existing owners retain a minority interest. This type of transaction allows the current owners to realize a substantial portion of the value of their investment while continuing to participate in the company's future growth. What are the key aspects of a majority recapitalization: 1. Partial Liquidity Event: The existing owners sell a majority of their equity in the company, providing them with a significant cash payout. This allows them to monetize part of their investment while still retaining a meaningful ownership stake. 2. Continued Involvement: The existing owners and management team often continue to be involved in the business, maintaining operational control or significant influence over strategic decisions. This continuity can be beneficial for the company’s ongoing success and growth. 3. Capital for Growth: The new majority investor typically injects additional capital into the company. This capital can be used for various growth initiatives, such as expanding operations, entering new markets, making strategic acquisitions, or investing in new products and technologies. 4. Partnership with Experienced Investors: By partnering with a private equity firm or other sophisticated investors, the company gains access to valuable resources, expertise, and networks. This can enhance the company’s strategic capabilities and accelerate its growth trajectory. 5. Alignment of Interests: The structure of a majority recapitalization aligns the interests of the existing owners and the new investors. Both parties have a vested interest in the company’s success and future value creation, fostering collaboration and shared goals. #MajorityRecapitalization #M&A #M&ATransactions #DealMaking #TheRaivaxGroup #M&ANegotiations #M&AExperts #LowerMidMarketDeals #M&AAdvisor #Top1%M&AFirm

Over the next three days, I will be covering the key aspects, benefits, and process of the majority recapitalization structure. This is the most common transaction type in lower mid-market M&A deals which involves restructuring a company's capital structure by selling a majority stake (more than 50%) to an external investor, such as a private equity firm, while the existing owners retain a minority interest. This type of transaction allows the current owners to realize a substantial portion of the value of their investment while continuing to participate in the company's future growth. What are the key aspects of a majority recapitalization: 1. Partial Liquidity Event: The existing owners sell a majority of their equity in the company, providing them with a significant cash payout. This allows them to monetize part of their investment while still retaining a meaningful ownership stake. 2. Continued Involvement: The existing owners and management team often continue to be involved in the business, maintaining operational control or significant influence over strategic decisions. This continuity can be beneficial for the company’s ongoing success and growth. 3. Capital for Growth: The new majority investor typically injects additional capital into the company. This capital can be used for various growth initiatives, such as expanding operations, entering new markets, making strategic acquisitions, or investing in new products and technologies. 4. Partnership with Experienced Investors: By partnering with a private equity firm or other sophisticated investors, the company gains access to valuable resources, expertise, and networks. This can enhance the company’s strategic capabilities and accelerate its growth trajectory. 5. Alignment of Interests: The structure of a majority recapitalization aligns the interests of the existing owners and the new investors. Both parties have a vested interest in the company’s success and future value creation, fostering collaboration and shared goals. #MajorityRecapitalization #M&A #M&ATransactions #DealMaking #TheRaivaxGroup #M&ANegotiations #M&AExperts #LowerMidMarketDeals #M&AAdvisor #Top1%M&AFirm

In a landmark deal, Focus Financial Partners recently became a private company again. Why was being public holding them back? 🧐 Being private allows Focus to restructure away from public investors and quarterly earnings. This move aims to harness the synergies within its expansive portfolio to drive growth and “get fit”. Consolidating Buckingham Strategic Wealth and The Colony Group, Focus aims to leverage their collective expertise and scale. Why do this now? Fewer, larger firms (vs. lots of smaller) should create more cohesive structure, better able to serve clients and advisors. The consolidation at Focus Financial signals a broader trend of scale and efficiency in wealth firms south of the border. 📊 What can Canadian wealth firms and practice owners learn from this transaction? ➡ Embrace Strategic Partnerships: Collaboration is key to growth and reaching scale faster. Operate in teams vs. Silos. ➡ Focus on Technology Integration: Invest in tech to capture efficiency wins and improve advisor-client experience. ➡ Big Isn’t Always Better: Focus on partnering where there are values and culture alignment. ——————— Acquatio is Canada’s first growth, transition and M&A specialist serving independent wealth management firms and their advisors. Interested in learning more? Acquatio.com https://lnkd.in/g8XtnF2B

Seasons greetings from #MeritWealthAdvisors, where we’re wrapping up 2024 and heading into 2025 with an exciting new venture. #NexStageConsulting will offer practical strategies to help business owners maximize the value they’ve built and plan for their next transition. Learn more on our latest blog: https://bit.ly/3OF3tTs #BusinessStrategy #ExitPlanning

Optimism is high for tech-enabled services in the M&A market. From class action tech to media software platforms, private equity is seeing a surge in fundraising and strategic investments. Learn more about the deals shaping the middle market. #TechDrivenM&A #MiddleMarket #BenchmarkInternational #DealTrends

Optimism is high for tech-enabled services in the M&A market. From class action tech to media software platforms, private equity is seeing a surge in fundraising and strategic investments. Learn more about the deals shaping the middle market. #TechDrivenM&A #MiddleMarket #BenchmarkInternational #DealTrends

Optimism is high for tech-enabled services in the M&A market. From class action tech to media software platforms, private equity is seeing a surge in fundraising and strategic investments. Learn more about the deals shaping the middle market. #TechDrivenM&A #MiddleMarket #BenchmarkInternational #DealTrends

Optimism is high for tech-enabled services in the M&A market. From class action tech to media software platforms, private equity is seeing a surge in fundraising and strategic investments. Learn more about the deals shaping the middle market. #TechDrivenM&A #MiddleMarket #BenchmarkInternational #DealTrends

Accelerate Your Growth with Bespoke Funding Solutions Is your business ready to scale with the optimal funding strategy? At Vergne Equity, we’re dedicated to driving your success by connecting you with family offices, investment bankers, and strategic investors. Whether you need funding for real estate ventures, mergers & acquisitions, or transformative growth initiatives, our expertise and extensive network can unlock the capital you need—across all funding levels. Our Key Offerings: AI-Enhanced LinkedIn Investor Lead Generation: Leverage cutting-edge AI technology to expand your reach and connect with high-value investors for your next big move. Comprehensive Fundraising Expertise: From compelling pitch decks to laser-targeted outreach, we equip you with the tools and strategies needed to secure your capital goals. Custom Debt & Equity Solutions: With flexible options for family offices, we provide funding solutions ranging from $3M to $50M for diverse property types. Whether you’re pre-revenue or post-revenue, we tailor our approach to meet your unique needs. Mergers & Acquisitions Advisory: Targeting transaction sizes between $30M and $700M, with a focus on $100M-$300M deals in sectors like healthcare, technology, and financial tech, we position you for strategic growth and market advantage. High-Impact Fundraising Opportunities: We facilitate funding from $10M to $200M for real estate projects, specialty finance, and high-growth companies, unlocking capital to fuel your expansion. Let’s chart a course for your financial success. Reach Out Today: Book a time to explore your options: https://lnkd.in/e7THDyhh

Optimism is high for tech-enabled services in the M&A market. From class action tech to media software platforms, private equity is seeing a surge in fundraising and strategic investments. Learn more about the deals shaping the middle market. #TechDrivenM&A #MiddleMarket #BenchmarkInternational #DealTrends