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LETS TALK PE MINORITY EQUITY: THE ALTERNATIVE SALES STRATEGY

APRIL 26, 2018
 

Thinking about growing your business but don’t have the means to support and/or fund your growth? Growing a business does not happen overnight and often times requires outsourced mentors or assistance.

In a special Gerber Discovery + Ice Miller speaker series collaboration, Charlie Sheridan from Huron Capital discussed private equity (PE), minority equity as the alternative sales strategy. Sheridan touched on a few of the possible uses of minority equity including:

  •   Add-on Acquisitions
  •  Facility Expansion
  •  Debt Pay Down
  •  New Product Line Launch
  • Sales & Marketing Investment 
  •  Management Buyout
  • Family Generational Issues
  • Shareholder Liquidity

 Below are a few highlights from the event to keep top of mind as you explore a PE minority equity partnership.

Getting an Investor Doesn’t Mean Losing Control | The benefit of minority equity is that the business owner retains operational control and majority equity while gaining access to capital and a support system to fuel business growth!

Gain More Than Capital | Minority Equity investors can serve as partners bringing more value to the table than just means for expansion. Investors can provide operational support, aligned business interest, sales experience, financial flexibility and minimal dilution to execute growth plans.


Pump the Breaks | Ensure you are ready to engage in a partnership. Start by evaluating these four key considerations:
  • Need to be relationship-oriented and willing to work together to make board-level decisions and resolve conflict.
  • You need to have a plan!
  • Be prepared to negotiate.
  • Minority investors need to see return within 4-6 years. If the business is not performing well, minority investors can assume majority control to get the business back on track.
 
Questions? Reach out to Huron, Ice Miller, or the Gerber teamfor more details!

Be sure to follow us on Facebook for event photos and updates on our next Discovery event!

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC . Investment advisory services are offered through Gerber, LLC. Gerber, LLC is not a registered broker/dealer and independent of Raymond James Financial Services. Raymond James is not affiliated with Huron Capital or Ice Miller. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.


INDEX
  • LETS TALK PE MINORITY EQUITY: THE ALTERNATIVE SALES STRATEGY
  • BUILDING A BEST PLACE TO WORK
  • GETTING YOUR BUSINESS SECURITY IN CHECK
  • SONGS AT THE CENTER LIVE AT GERBER! PART DEUX
  • MOTIVATING THE HIGH PERFORMERS IN YOUR BUSINESS
  • WHAT YOU DON'T KNOW... WAGE & HOUR LAW IMPACT FOR BUSINESS OWNERS
  • INTELLECTUAL PROPERTY AS A VALUE DRIVER FOR YOUR BUSINESS
  • COMPETITION FOR CASH
  • FOR BETTER OR FOR WORSE
  • HIRING THE RIGHT CONTROLLER FOR YOUR BUSINESS
  • GUYS' NIGHT WITH GERBER
  • LADIES' NIGHT WITH MRS. LADYLIKE
  • BUSINESS GROWTH MADE SIMPLE
  • SONGS AT THE CENTER. LIVE AT GERBER!
  • UPSTREAM GRATITUDE: CREATING A CULTURE OF GRATEFUL EMPLOYEES WHILE INCREASING YOUR BOTTOM LINE
  • DIGITAL DANGERS AT HOME
  • ORGANIC CONTAINER GARDENING
  • COOK HEALTHY, COOK EASY
  • HIRING IN A HIGH-GROWTH ENVIRONMENT
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