For Business Owners

 

As entrepreneurs ourselves, we understand that selling a business can be a difficult and emotional decision. Good businesses are the result of years of hard work, sacrifice and commitment ― values that Cadence Capital holds deeply. We want to ensure business owners that our number one priority is the continued success of their business and all of its stakeholders.

 

All discussions with Cadence Capital Partners, preliminary or otherwise, are held in strict confidence.

 

Our Value Proposition

Cadence Capital Partners applies a unique philosophy to investing in small businesses. Unlike purely financial buyers, Cadence Capital takes an active role in managing the day-to-day operations of its investments.

 

The table below illustrates how Cadence Capital differentiates itself along several key dimensions.

 

		Private Equity Fund	Strategic Buyer	Individual Investor
Value Creation	Building and growing world-class companies through operational improvements	Financial engineering and strategic oversight	Acquisition integration and cost cutting	Lifestyle investor
Investment Horizon	Long-term   No preset exit deadlines	3 to 5 years   Investment horizon restricted by life of fund	Long-term	Varies
Source of Capital	Group of highly successful entrepreneurs, operating executives and investors	Institutional (large endowments, pension funds and insurance companies)	Public and private funds	Limited resources to invest and make ongoing improvements
Commitment	Managing Partner will relocate to your community and assume a full-time operating position	One of several portfolio companies   Occasional Board level involvement	One of many divisions	Varies

 

Our Investment Process

 

Step 1: Introduction to the business

We rely on both our research-driven approach to identify attractive industries and our extensive network of business intermediaries to learn about new investment opportunities that fit Cadence Capital’s unique approach to investing.

 

We invest time and resources upfront to truly understand the business and its key drivers. During this process we hope to develop a lasting relationship with the owner/operator, which serves as a solid foundation for Cadence Capital’s future involvement in the business.

 

Step 2: Structuring the investment

We value companies fairly and structure investments that reflect the company’s history of success and opportunities for growth. We work with owner/operators to develop tailored solutions regarding estate planning, efficient tax structuring and family member involvement in the business. We also support owner/operators who seek to remain active in the organization, if such a role is desired.

 

After agreeing on the investment structure, we will spend the next few weeks working with the company to complete our business, legal and financial due diligence.

 

Step 3: Post-closing

We are committed to developing world-class organizations over the long-term that build upon the company’s history of success. This means ensuring the continuity of the company’s culture, customer base, employee relations and community standing.

 

Shortly after closing the transaction, our Managing Partner will relocate to the company and assume a full-time managerial position, focusing on day-to-day operations. Specific roles and responsibilities will be determined based on the ongoing needs of the business. In addition, we will form a Board of Directors comprised of industry experts and Cadence Capital Limited Partners to help guide the company going forward.

 

We will formulate a growth strategy with near and long-term benchmarks and will invest additional capital in attractive growth opportunities throughout the investment.

 

We understand that a long and drawn out sale process puts significant strain on the organization and takes management attention away from running the business. Our experience acquiring and operating businesses allows us to anticipate and address issues early in the process, enabling a timely and smooth transition.