For many business owners we work with, their most valuable asset is their business.
When considering how to monetize that asset and plan for an eventual exit, owners have more options today than a full sale.
In addition to traditional acquisitions of 100% of a company, many business owners are choosing to sell a portion of their business, often between 60% and 80%, to achieve greater financial security and peace of mind.
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For many middle-market companies, this decision is increasingly shaped by private equity interest and evolving merger and acquisition structures.
This recapitalization strategy allows owners to take some chips off the table by realizing the business’s current value while protecting against future market volatility and unexpected events.
At the same time, owners retain meaningful equity and continue to participate in future growth, often with the support of a financial sponsor.
Considering selling part of your business?
Divesting a portion of a business can provide owners with greater financial stability by converting illiquid value into capital while diversifying personal risk.
Hyde Park Capital has guided many business owners through this process, helping them determine when to sell and evaluate different merger and acquisition structures that align with long-term goals.
By selling a majority interest while retaining ownership, founders can continue to benefit from future growth.
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External capital can be used to expand operations, pursue acquisitions or strengthen management teams, which may increase the value of the remaining shares and create additional long-term wealth opportunities.
With experience across hundreds of transactions, Hyde Park Capital brings insight that extends beyond individual deals.
Our approach focuses on running disciplined, targeted processes designed to maximize value and create competitive outcomes for sellers.
Competitive buyer pool and process outcome
In one recent example, a client was approached by two strategic buyers with verbal preemptive offers to purchase the company.
While both buyers were a logical fit, the seller engaged Hyde Park Capital to run a competitive process to increase transaction value.
As a result, each preemptive buyer increased their offer and additional buyers submitted bids.
RELATED: LEARN MORE ABOUT MERGERS AND ACQUISITIONS
One preemptive buyer raised its offer by 40%, while a new buyer entered the process at a valuation 70% higher than the original proposal.
In this case, Hyde Park Capital managed the M&A sale process through competitive dynamics, strategy and negotiation to help the client achieve the strongest possible outcome.
By John Hill, managing partner, Hyde Park Capital.
Hill has executed hundreds of transactions, including mergers and acquisitions, financial advisory engagements, public offerings, private placements of equity and debt securities and fairness opinions.
He is a former director and chairman of Florida Venture Forums, the State of Florida Investment Advisory Council and a former board member of the CEO Council of Tampa Bay.