Author: Josh Stamey
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The Second Bite
We bet you’ve heard other business owners discuss the proverbial ‘second bite of the apple’ with an investment and/or strategic group. What does it mean? The “second bite” or more formally, a majority recapitalization, is a transaction tool which helps owners grow well beyond their immediate capacity and experience to maximize their total seller benefit…
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Not Ready to Call it Quits? Majority Recapitalization: Best Bet for Owners
How it works: In the original transaction, the business owner(s) sell 100% of the business to an investment group or a partnership team. The business owner(s) may re-invest proceeds from the original transaction into a minority equity position (between 1-49%) in the new company. The investment group combines industry relationships and access to resources w/the…
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The Lower Middle Market and M&A
The lower middle market, businesses with $5m to $100m in enterprise value, offers a diverse and varied range of companies, from generational family manufacturing operations to innovative tech and advanced software development firms. Although highly fragmented, the lower middle market is the spine and nerve center of the U.S. economy. The lower middle market is…
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How to Decide on the Right Partner for Acquisition
Picking the right buyer is difficult, especially if you have multiple suitors in play at the same time. The highest price isn’t always the best bet in the context of total seller benefit. We’ve closed dozens of transactions where the highest price didn’t win. We educate business owners up front to pay close attention to…
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SMP Capital Partners: An Introduction
SMP Capital Partners offers investment banking services to privately held businesses and business owners. We deliver efficient, trustworthy, and expert M&A services to businesses in the lower middle market ranging from $5m – $150m in enterprise value. With nearly 40 years of deep learned, real world deal experience, we understand how transactions work before they…