NelMac Company Inc.
Exit Strategies & Other Solutions for Business Owners

Solutions That The Network Can Provide To Business Owners

Want to sell your business or looking for some liquidity?

Need help establishing an Exit Strategy?

The Network's resources can help owners of established businesses with the following:

The Network's resources have the financial capability and deal experience to efficiently close transactions. They also have substantial operating experience and a collaborative approach to build value for the companies with whom they partner. The Network has the unique ability to provide an ideal partner for liquidity and growth,  possessing the requisite level of character, experience, ability, and desire to help a company prosper.

Total or Partial Sale of their Business

The Network's different resources can make either majority and minority equity investments, or 100% acquisitions as called for. The following are some specific types of scenarios, needs or desires that business owners and executives often have and the Network's resources can provide to business owners as part of their exit or growth strategy.

Growth Capital

Companies need capital to grow and reach their next level of success. Without it, many companies face a long struggle of bootstrapping growth through internal cash flow. When an established company that meets investment criteria has significant opportunities to grow its business, as well as the management team to execute the plan, the Network can deliver the resources to assist them.

Recapitalizations

Company owners often seek a recapitalization in order to achieve what may appear to be conflicting goals: the sale of a significant portion of the business to create personal liquidity diversifying personal net worth, while retaining a significant stake in the business to participate in the future growth. Both of these goals are well served by a recapitalization from one of the Network's resources.

Family Succession Recapitalizations

In the life of family businesses, there often comes a time when a recap is necessary to transition ownership from one generation of the family to another, to create liquidity and diversification in an estate, and to ensure that the next generation gets its opportunity to run and grow the business. The Network's resources have an extensive history of successfully navigating family dynamics and achieving the often-divergent goals of different family members.

Management Buy-Outs

When incumbent managers have the opportunity to buy the company or a division that they run but do not own, they need a partner with the credibility, funding and experience to get the deal done. They want a partner who will treat the manager(s) generously, afford them significant ownership, and serve as an effective partner for growth. The Network's resources have proven to be highly effective partners in MBO’s of privately held companies, as well as divisions of Fortune 500 companies. Should a management team have its own wherewithal to fund its own buy-out or acquisition of the business, our Network can help structure the transaction and secure financing to supplement their equity contribution.

Management Buy-Ins

Company owners face profound challenges in the sale of their businesses or divisions when there is a need for talent at the most senior levels of management. When asked, the Network's resources have successfully recruited outstanding leadership, enabling this challenging type of transaction. We believe it is important to recruit not only the correct technical talent, but also the right personality who will fit with and respect the company's culture. Moreover, the Network's resources have proven to be outstanding partners to recruited senior managers by sharing equity generously and helping to build value.

Industry Consolidations

One of the greatest opportunities for business owners and equity investors to build value is found in fragmented industries where solid management teams have the ability to grow through add-on acquisitions. Several of the Network's resources have been some of the nation's most active and successful consolidators of industries starting with lower middle market companies. Such consolidations entail partnering with a platform company and backing its owner/operators in the acquisition of several strategically attractive add-on companies. Some of their consolidation projects have grown in profit ten-fold, enjoying significant value creation, particularly given the purchase price multiple expansion realized because of increased size. The Network's resources have demonstrated a healthy balance between the ability and desire to create significant growth, and the understanding that sufficient infrastructure and management talent must exist to ensure that the growth is both profitable and sustainable.

Solutions for Business Buyers

If you would like to purchase a business please contact us to discuss how we may be able to help you with the following:

  • Acquisition Search Projects

  • Partnering opportunities with the Network's resources to support your acquisition plan

  • Download our Buyer Profile form