We know what matters most: financial security for you and your employees as well as the continuity of the business you’ve spent years creating. Our goal is to make that a reality in the most efficient, fair, and flexible way possible.
Ease and flexibility of transaction
With extensive M&A experience on both the buy-side and sell-side of transactions, we can tailor the transaction structure to suit your needs and preferences, making the selling process as smooth as possible.
SPEED TO CLOSE
Since we don't have an investment committee, you'll be working directly with the only decision maker. This means you'll have a clear, streamlined process and the fastest possible path to completing a sale.
LONG-TERM COMMITMENT
We are focused on a single acquisition that we intend to operate for the long term. We will dedicate our full attention and resources to the one business we acquire, ensuring its continued success.
UNDERSTANDING THE ENTREPRENEUR'S PERSPECTIVE
As a former founder and operator of a small business, our president, Adam, intimately understands the challenges faced by entrepreneurs as well as the complex emotions that go into selling something that you've dedicated so much to. This perspective guides the values of Racoma Strategies.
| RACOMA STRATEGIES | PRIVATE EQUITY | COMPETITOR | |
|---|---|---|---|
| SELLER’S PROFIT | You’ll see your money upfront with a major liquidity event upon close | It could take a long time for you to take money off the table. Often tied to earnout and performance metrics, or the long-term, ongoing success of the business | It could take a long time for you to take money off the table. Often tied to earnout and performance metrics as well as Seller’s continued role working as a manager for the buyer |
| TIME TO CLOSE | Fastest option possible with the potential to get from initial introduction to a completed transaction in under 3 months. You’ll be interacting directly with our only decision maker, so the process is quick and pain free | 6-12 month negotiation process involving several counterparties and approval required from investment committees | 9-12+ month negotiation process requiring several layers of approval and a protracted integration period |
| EASE OF TRANSACTION | The deal structure is completely flexible to Seller’s needs and circumstances. We are able to easily adapt in order to create the most mutual benefit | The deal structure is driven by required return thresholds for investors and other strict requirements | The deal is structured to protect the acquiring company from risk, which means a potentially disadvantageous situation for Seller |
| SELLER’S ROLE POST-CLOSING | Extremely flexible to Seller’s preference | Full-time ongoing operating responsibility with strict investor oversite | Required to stay on for extended time as a business unit manager working under a corporate structure |
| BUSINESS’S FUTURE | Remain an independent company with 100% of new owner’s focus and commitment | One of many companies within a portfolio, often bought to be resold within 3-5 years after aggressive cost-cutting measures | Small piece of a larger business, often with less autonomy and decreased ability to serve customers and employees |
| EMPLOYEES’ FUTURE | Highly focused on retention as current employees will be critical to the business post-transaction. There will be significant opportunity for growth and promotion | Employment status at risk due to private equity cost cutting measures | Employment status at risk as competitor will have their own employees and terminate those that are redundant |
| SOURCE OF CAPITAL | Personal wealth and committed group of high-net-worth and ultra-high-net-worth individuals | Institutional Funds, Sovereign Wealth Funds, and Pension Funds that have limited time to generate specific returns | Company performance and capital market cycle |