Mergers, Acquisitions, Divestitures, Operations.
At 72 Equity, we specialize in
- Buying out asset and cash-flow rich, stable performing classes Of Companies where long-term retirement incentives, generational wealth preservation, and tax minimization is structured with the sellers maintaining an absolute and guaranteed return on any earnouts, regardless of the company's future performance.
- Meeting complex requirements in all divestitures, typically working with "strategic sellers" that seek to shed a non-core asset in order to refocus their business operations. Our in-house teams mitigate transaction and transition risks that can affect all stakeholders. Our operations experience gives us invaluable perspective. And our financial arsenal ensures that we have the capacity to complete transactions of any size without financial contingencies.
- Acquiring international companies whose underlying assets and core business operations have not been fully realized due to Management's strengths or focus in other endeavors.
- Emerging Markets industries such as agribusiness and eco-conscious natural resources that can have vertical and horizontal global consumer and commercial uses.
MANAGEMENT'S DECISION TO SELL
We work side by side with management teams and business owners who have a realistic valuation of their company and business operations and don't wish to engage "business brokers", or other intermediaries who may not always guide them to a quick and effective sale based on a realistic price. Typically our direct acquisition structure allows for:
- A swift transaction without the need to publicly advertise the company for sale
- Capital gains minimization
- Guaranteed payments of earnouts and other "sweeteners" In the event a Company experiences future challenges
- Advice On Federal And State Tax Credits And Incentives Planning
- Fair valuation without third party commission premiums
- An understanding that the sale will be win-win
- Implementing a new management team whose leadership styles will be based on human dignity, consciousness, ethics, and global vision.
If you have a business or company in any of the Target Industries listed with an EBITDA of at least $5 million, please email deals@72equity.com a brief summary of your objectives and one of our executive team members will contact you.
STRATEGIC SELLERS
A divestiture can be driven by many factors. We typically work with strategic sellers that, when considering a divestiture, weigh the value of benefits such as:
- a swift transaction
- increased shareholder value
- preserved brand equity
- business continuity
- an improved balance sheet
Strategic sellers may also seek to realize long-term agreements that continue distribution or service partnerships with the divested unit.
SEAMLESS TRANSITIONS
We focus on business continuity as one of the most critical measures of a successful transition. We consider all of the stakeholders involved and take measures to ensure uninterrupted customer service, minimal employee uncertainty, and preservation of the seller's brand reputation. Our ability to maintain business continuity through transition is what allows us to pursue deals that pure financial buyers might forego.
Before a transaction closes, we have already built a transition plan, identified operational issues, and developed a long-term business strategy. From HR and legal to IT and finance and marketing, we have the practical knowledge and experience necessary to help build out a company's infrastructure. Working with existing management, we quickly:
- transition the business
- stabilize its operations
- identify new progressive and visionary strategies for global growth
- disengage
We then empower company management to run the standalone company.
OPERATIONAL EXCELLENCE
Our progressive management insight and entrepreneurial vision empowers companies and management to execute great performance through decisive day-to-day leadership based on conscious and ethical principals. Each portfolio company management team operates independently, making decisions based on their knowledge of the market, customers, and competitors. We provide strategic oversight and progressive management guidance, which gives managers a valuable resource to draw upon in:
- improving efficiencies
- evolving strategies
- identifying and resolving operational issues
- Idea generation
- global Expansion