TYPES OF SITUATIONS
Over the past 25 years, the Principals of Prospect Partners
have worked closely with business owners to help transition their
businesses to the next phase. Prospect Partners understands how
important a closely held business is to its owner. We know that
entrepreneurs have expended countless hours and tremendous energy,
devoting years and sometimes lifetimes to ensuring the success of
their company. We know that most often, the single greatest investment
in a business owner’s life—both financially and, in
many ways, emotionally—is to his or her business. It is with
this perspective, the owner’s perspective, that we approach
every situation.
We have found that transitioning a business to that next phase
requires both understanding and flexibility, because no two businesses,
no two owners, and no two situations are ever the same. Through
the course of our careers, however, we have found three common themes
encompassing the types of situations an owner may be in when seeking
to transition his or her company, and life, to the next phase. The
three themes are as follows. If you are a business owner, please
download "Recapitalizing Your Business With Prospect Partners" to better
understand how we work with you.
Owners Seeking Retirement & Liquidity
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The time has come to realize all of
the effort a business owner has put into a business. The time
has come to retire, and to sell. How and through whom does
one sell a business? Prospect Partners has worked with many
management teams in buying out the retiring owner of a business.
We are able to provide the capital and the know-how to complete
the transaction while management is able to continue to focus
on what they do best – running the company. Oftentimes,
a transition period is required in order to allow management
the opportunity to learn, as well as to ease the owner’s
own transition into retirement or into the next career phase.
This transition period assures continuity for customers, vendors
and employees alike. Prospect Partners works efficiently in
completing these transactions, while ensuring the utmost in
confidentiality and professionalism each step of the way.
Exhibit:
Prospect Partners acquired Clarence J. Venne of Philadelphia,
Pennsylvania from its owners, who wanted to retire after nearly
40 years in the business. Prospect worked closely with
the family to complete a transaction that met the family’s
needs while providing an opportunity to continue their legacy
through a management buyout of the company. Clarence J. Venne
is the leading brand of marking products used in the bingo
industry.
Prospect Partners has also completed similar transactions
within a family structure, allowing the parent to transition
company ownership to his or her children or to existing management.
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Owner-Managers Seeking Some Liquidity and Capital
for Expansion
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Prospect Partners has completed more
recapitalizations than any other transaction type. We embrace
the opportunity to work with passionate entrepreneurs in expanding
their business through internal opportunities or through acquisitions.
By recapitalizing the business, which provides cash at closing,
we provide the entrepreneur with the opportunity to realize
some of the value they have created for their families today.
The entrepreneur also retains the opportunity to benefit from
the future growth of the business through continued ownership
of a significant portion of the company after the transaction
has closed.
After the closing, we work in close partnership with the
entrepreneur and management team to grow the company over
the next several years. Prospect Partners’ team remains
active at the Board of Directors level while encouraging management
to drive the day-to-day success of the business. We assist
management by ensuring that the company is adequately capitalized,
by actively searching for strategic acquisitions, by assisting
management in recruiting key managers into the growing company,
and by acting as an advisor on strategic planning.
Exhibit:
Prospect Partners recapitalized Office Resources, Inc. of
Boston, Massachusetts with its owners/senior management. The
transaction provided the owners with some liquidity, the company
with capital to grow, and the management team with a business
partner and sounding board. Prospect Partners has been a valuable
and reliable partner to Office Resources, providing resources
and knowledge to help the company navigate through challenges
and capitalize on opportunities. Office Resources is a leading
distributor of high-end office furniture in the Northeast.
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Manager-Led Acquisitions
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Prospect Partners is focused on investing
in and with experienced managers. We engage in opportunities
to work closely with management to acquire companies in three
situations: 1) when management is working inside of a closely
held company, 2) when a large company is trying to sell a
division to the division’s management team, and 3) when
an experienced industry veteran wishes to work with us in
acquiring a company in which industry experience is important
to the success and growth of the company.
Over the course of many transactions, we have found that
the one constant in successful investments is strong, focused
management. In order for management teams to be effective,
we work to put management in situations in which they can
be successful, and encourage open dialogue through the course
of transition and growth. Prospect Partners’ team remains
active at the Board of Directors level while encouraging management
to drive the day-to-day success of the business. We assist
management by ensuring that the company is adequately capitalized,
by actively searching for strategic acquisitions, by assisting
management in recruiting key managers into the growing company,
and by acting as an advisor on strategic planning.
Exhibit:
In 1999, Prospect Partners teamed with a successful young
executive named Tom Walsh to acquire First Texas Products
of El Paso, Texas. Prospect Partners provided Tom Walsh with
capital, transaction expertise, and acquisition opportunities
for the company, all of which have contributed to the success
of the company. Since completing the initial transaction,
the company has experienced unprecedented growth. The products
have expanded into several new channels of distribution and
the company has completed a key acquisition.
In 1999, Prospect Partners teamed with a successful young executive named Tom Walsh to acquire First Texas Products of El Paso, Texas. Prospect Partners provided Tom Walsh with capital, transaction expertise, and acquisition opportunities for the company, all of which have contributed to the success of the company. Since completing the initial transaction, the company has experienced unprecedented growth. The products have expanded into several new channels of distribution and the company has completed a key acquisition. Today, First Texas is a leading manufacturer of treasure hunting metal detectors, underground utility location and maintenance equipment, and consumer and law enforcement night vision products. |
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