FOR SMALL BUSINESS OWNERS looking for an opportunity to achieve maximum value for their business, a partnership with Shefford can be an ideal way to transfer ownership, achieve significant liquidity, and remain involved in the day-to-day operations and future growth of the business.
Partnering with Shefford is an excellent way for small business owners to obtain significant liquidity at an attractive valuation without having to transact an outright sale.
Shefford prefers to purchase over 50% of the equity in a typical transaction. This can generate substantial liquidity for the owners to “take some chips off the table” and diversify their net worth, while maintaining significant ongoing ownership, providing for new ownership opportunities for the next generation and retaining day-to-day operational control.
In addition to providing liquidity for business owners, Shefford will provide additional capital for internal and external growth opportunities.
In many businesses, the owners have excellent growth plans but do not have the capital or is not willing to invest to execute a given strategy. This could include opening additional locations, entering a new product or service line or making select acquisitions of marketplace competitors. Shefford is more than willing to provide the capital necessary to execute growth plans that make strategic sense.
Many owners have created substantial personal wealth and are looking to eliminate personal guarantees. In the past, this was difficult to do without selling the business to a competitor and giving up control to a larger company. Partnering with Shefford, all personal guarantees are eliminated and day-to-day control remains with the management team. Shefford has no interest in running the business on a daily basis; we will have approval rights on major issues such as new acquisitions, capital raises, strategic plans, and future liquidity events but we will leave the daily operation of the business in the hands of our partners.
Shefford not only brings financial strength to a business, we bring the opportunity to generate new customers and new supplier relationships.
We participate in the business at the Board of Directors level and will assist in driving ongoing success in the business.
Furthermore, Shefford’s goal is to maximize the value of our investment in the business which in-turn maximizes our partners’ ownership interest.
In a typical partnership with Shefford, our new partners will still own a large percentage of the business (10% to 50%) through a combination of retained ownership and new stock options. Therefore, they will be in a position to receive substantial additional value from the business AFTER the transaction. After the initial transaction, the focus will turn to growing the business, both organically and inorganically, to create value; whereby our partners realize a multiple, in terms of money, from the “second bite at the apple” than from the first.
477 Madison Avenue
New York, New York 10022