At Alten Capital we connect with dozens of founders and entrepreneurs every month. Different organizations and individuals have distinct needs throughout the lifecycle of their businesses. We’ll share views on typical company needs, shareholder requirements, and deal alignment dynamics.
There is no one right path for businesses; there are multiple ways to create value. Growth is typically a very effective value-creation lever, and aligning with partners to achieve growth goals is laudable.
Aligning the shareholders’ and company’s needs with the capital provider’s capabilities is important. If shareholders need liquidity, the transaction must include a secondary (“cash-out”) component. If the business needs cash to do M&A, a primary component (“cash-in”) may be relevant. Agreeing on governance and control provisions is key, regardless of whether it’s a majority or minority transaction.
At Alten Capital we invest in technology services businesses. Please reach out to explore potential partnerships.