Our Goals Are Aligned
Our job is to utilize your existing team to raise your company to new heights over the long term. We have no team of our own to “take over” aside from us (that is, Simone and Malcolm). Our investors expect a 35% internal return on investment from us— a return that is only achievable through growth and expansion, not blunt cost cutting.
We are not merging your company with a larger organization which can lead to “redundant employees.” We differ from private equity firms in that your company will be the only company in our “portfolio.” We are betting our futures on the enduring strength of what you created. A buyer with a large portfolio of companies may give up on yours during hard times. This is not an option we have. Our lives and futures will be permanently tied to the success of your company.
We have an enormous amount of flexibility in how we structure our deal. Family Ventures entire purpose is this one deal.
- We want to utilize your existing team
- Your company will be our life
- We can be flexible with our deal structure
- We have no pressure to exit in the near future
- We have experience starting, running, and growing companies
- Our investors have invested in and advised hundreds of individuals like ourselves as they purchased and grew companies like yours
Family Ventures vs. Alternative Company Buyers
|Family Ventures||Private Equity||Strategic Buyer|
|COMMITMENT||Fully committed to long-term growth. Our Board of Directors will be drawn from our existing investors, who have successful business operations experience.||Long-term growth of your company might be compromised when short-term targets loom. Your company is one of many in a large portfolio.||Your company will become one of many divisions within a larger company. Commitment revolves around growth for the core business, not yours.|
|EXISTING MANAGEMENT||Your company will maintain its current management team and be given a CEO whose success is directly connected to the business.||Your company’s current management is kept only if they meet strict, short-term financial performance standards.||Though this varies from deal to deal, it is common for much of the acquired management to be replaced due to duplicate jobs.|
|TIME HORIZON||We have a long (5+ years) time horizon with a diverse pool of investors preventing any single force from imposing a short-term focus on the company.||Your company and its management will be optimized for short-term value creation and a quick investment exit.||Strategic buyers’ time horizons are mixed; it depends on their strategic objectives.|
|SOURCE OF CAPITAL||We have five institutional investors and twelve individual investors (see Management and Investors). We make the final investment decision.||Funds, which have already been committed, come from sources that will never be known to you.||Purchase of your company will require a significant number of internal approvals and the current financial health of the core business.|
|DEAL TERMS||Our deal terms can be flexible; we want to be sure all parties involved have their interests addressed.||Deal terms are typically complex. Sellers are often handicapped due to serious financial knowledge asymmetries.||Long-term compensation is usually tied to future performance.|