Florian Schepp’s Post

Story time. Recently, a client of ours had a choice: make a minor technical amendment to the company’s articles of association, that would cost him little time, effort, and legal fees, or to allocate additional company equity to an advisor. The client chose the latter, which got me thinking about the implications of such a decision, and generally about equity allocation vs. cash payments. Key Risks & Considerations: ·        Dilution of Ownership Allocating more equity means existing shareholders' stakes get diluted. This can be a tough pill to swallow for founders and early investors who see their control and potential returns decrease. ·        Governance Challenges and Making Decisions Bringing in new equity holders means more voices in the decision-making process. This can complicate governance and slow down critical business decisions. It's essential to structure voting rights and board representation carefully. ·        Impact on Future Funding and Investor Relations Additional equity allocation can affect future fundraising efforts. A crowded cap table might deter potential investors or impact the company's valuation. Strategic planning is crucial to navigate these waters. In addition, such allocations may show investors how the company's management perceives its value. Key Benefits: ·        Attracting and Retaining Talent Equity can be a powerful tool for attracting and retaining top talent. It aligns employees' interests with the company's success, fostering a more committed and motivated team. ·        Preserving Cash By using equity instead of cash, companies can preserve their financial resources for essential operations and growth initiatives. This is particularly beneficial for startups or businesses in capital-intensive industries. ·        Long-term Value Creation Properly structured equity allocation can drive long-term value creation. It incentivizes stakeholders to focus on the company's overall success, leading to sustainable growth and innovation. #EquityAllocation #CorporateLaw #StartupStrategy #BusinessGrowth

As we work across the world of Private Equity, there were a few things that struck me when people made the move.. Is Private Equity for you? https://lnkd.in/efuPmhCP

HOW TO GET A VC's ATTENTION 1. Research firms (they write and talk a lot) 2. Find firms that invest in your stage 3. Find firms that invest in your idea space 4. Figure out who the GPs / investors are 5. Figure out who they've invested in previously 6. Contact the people they are connected to 7. Be SUPER clear about your pitch to the "middleman" 8. Your message should be extremely succinct 9. Make it worth their while to read your message - possibly offering advisory shares if needed 10. Get the warm intro

Finding PE-backed companies in specific niches was one of our most-read articles last month, and it's no surprise. For investment bankers and M&A professionals, uncovering PE-backed companies or private equities active in your area of interest can be a strategic ace up your sleeve. 👉 Find strategic acquisitions: Target PE owned companies nearing the crucial 5-7 year investment mark in your niche. 👉 Source new deals: Discover companies ready for sale and position yourself as the go-to advisor. 👉 Identify potential buyers: Pinpoint private equities for whom your client would be the ideal addition. And, while it might go without saying, leveraging Inven makes this easier than ever before. Discover both traditional and AI-driven strategies to uncover these gems: https://lnkd.in/dKWPWuG8

Happy to finally share some news I have joined Portrait Capital as a Partner and President of Portfolio Operations. What is Portrait Capital? Formerly Majority Search, Justin Burris & Tim Ludwig founded Portrait Capital with the goal of helping family businesses transition to the next generation of leaders. Portrait Capital is a private investment firm crafting perfectly-tailored transitions for exceptional small and mid-sized companies. We manage committed capital on behalf of 75+ founders and family business owners who share our focus on growing companies and leaders over the very long-term. Our unique fund structure allows us to buy companies with no intent of selling them. Decades. Not years. The biggest lesson I learned in my last venture was that it matters so much more about who is next to you than it does what you are doing. Before joining, we spent a tremendous amount of time discussing life, friends, family, the highs and lows of business ownership, and the ways in which we can assist families by creating a perfectly tailored transition that ensures we honor the family legacy for decades. We were aligned. I grew a major appreciation for Tim and Justin, not as professionals, but as people. Something I was very thoughtful of in making this decision was the time horizon. We cannot ask the families of companies we are buying to trust us for decades if we do not also have an internal trust level with each other that is rooted today but will grow for decades. What they have accomplished professionally is jaw dropping. Who they are as people is even more astonishing. I could not be more excited to partner with Tim, Justin, Bruce, and the people who have entrusted us to make decisions for decades.

Often founders ask me about what Pioneera is looking for. 👇 Here are some tips when approaching a private equity firm

PRIVATE EQUITY INVESTORS - MARKETING IS NOT SALES! PE firms are terrific at financial engineering, but when it comes to growing revenue, many believe they can simply invest in marketing and it translates into revenue growth. The right kind of revenue growth that is aligned to increased valuation begins with a strategy followed by complete and holistic alignment of the entire revenue function and all of its financial and human resources. Marketing certainly becomes a key piece of the puzzle, but it is not the only answer. Send me a note if you'd like more information on how Accelerant Consultants uniquely addresses this issue and helps PE firms, family offices, and business owners build revenue, profitability and, most importantly, value and business transferability more quickly. #privateequity #venturecapital #middlemarket

Key review of the latest Private Equity activity for M & A and challenges seen and ahead!

𝗛𝗼𝘄 𝗠𝘂𝗰𝗵 𝘁𝗼 𝗔𝗹𝗹𝗼𝗰𝗮𝘁𝗲 𝗳𝗼𝗿 𝗣𝗿𝗲-𝗦𝗲𝗲𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗶𝗻 𝗩𝗮𝗿𝗶𝗼𝘂𝘀 𝗦𝗲𝗰𝘁𝗼𝗿𝘀? To figure out how much of your pre-seed investment should go into different areas, consider these queries: -What motivated me to kickstart this venture? -Which issue are my potential customers really hung up on? -What hurdles must I overcome to get my enterprise off the ground? This could encompass aspects like team dynamics, market trends, regulatory environments, and technological advancements. -Is it possible to tackle any of these challenges? If you can, expect to BOOST your business's value substantially in the upcoming funding round. Having pondered these points, you ought to reverse-engineer the assets required to achieve your goals. For instance, dedicating half of your pre-seed funds to craft and evolve a Minimum Viable Product (MVP) could be a smart move. It's a way to verify whether your offering resonates with the market and if it's something your clients genuinely need or merely desire. Next, allocating 20-30% of your funds towards marketing and operational expenses could cover hiring external experts like accountants, solicitors, and various professionals crucial for your business now and shortly. #PreSeedFunding #StartupGrowth #MVP 🚀💼🌱

Reading a comment this morning about the "absent founder" phenomenon that's taking effect on many Wealth Management acquisitions at the moment and having personally experienced it quite literally drive a successful business into the ground, its no wonder its causing a few headaches. Its no secret that there's a huge amount of M&A activity within the wealth community, and so many firms are facing the "absent founder" effect. Larger acquiring firms often bring capital and scale, but how are they tackling the challenge of maintaining that founder's vision and client-first culture? As founders step back post-acquisition, there’s a risk that personalised service and strong client relationships may erode. So how are acquiring firms addressing this to ensure they preserve what made these independent firms successful in the first place? Is it even a priority in the pursuit of AUM/A? It's quite the knot to untangle! __________________________________________ I'm Chris Oxley, a specialist Executive Search professional supporting Wealth & Investment Management firms. I help attract high-calibre talent by providing a transparent, evidence-based search process that focuses on a humanistic approach to people. Visit my website at www.oxleyandpartners.com. 🌐 #wealthmanagement #IFA #aquisition