Capital is a differentiating strength of Dakota Capital. We enable liquidity in cash purchases by providing the entire capital structure under $50.0 million and all the junior capital in transactions in excess of $50.0 million. Confidence of closing and a strong balance sheet after the transition is assured. As we do not use banks, our transactions are very quiet and confidential and small bases of assets are attractive to us.
Dakota Capital commits to what it knows it can deliver. Simply stated, we fulfill on our promises and confidentiality is assured. We provide flexibility and security through the transaction process. In order to deal with the emotional and financial desires of the owner, we spend a great deal of time understanding the needs of the shareholder to craft solutions to any issues that may arise.
In addition to our attunement with the shareholder, Dakota Capital strongly believes that partnership with management is a key foundation to successful private equity investing; as such we welcome Management Buyout (“MBO”) opportunities.
There are a great number of private equity firms in the United States that invest in middle market companies. Few though have the ability to provide all the funds for a transaction in an all cash purchase price. Dakota Capital stands out with its complete, flexible and aligned capital structure which enables efficient, quick and quiet closings.
As advisors are usually on a tight time schedule, we promise to respond rapidly with decisive answers to our interest. We believe in paying fair values for attractive assets and will respect your process and work within your framework to move the transaction at a comfortable pace. Finally, we gladly pay customary buyside intermediary fees should a fee not be secured on the sellside.
Accountant and Attorneys
We commit to treating your clients with care and understanding. The decision to enact a transaction is a substantial step in a Company’s evolution and a significant milestone in the life of the owner. History, emotions and economics can create many divergent objectives that can convolute decisions. In these circumstances, we provide stability as well as flexibility to aid your client through a successful transaction process with confidentiality assured.
In addition, we provide confidence in closing and with no financing contingencies. After the transaction, we ensure that the Company is able to maintain its independence and relationships with their service providers.
Estate Professionals and Financial Planners
One of the primary issues in estate planning for entrepreneurs is monetizing a valuable non-liquid asset. Dakota Capital provides liquidity for those assets in various forms including an outright sale or its IPO Alternative ™ a recapitalization with continued ownership interests. Through the IPO Alternative ™, we can help minimize estate taxes by achieving an estate freeze under Chapter 14 of the Internal Revenue Code.
Our approach to investing is direct and deliberate. We realize that time is always of the essence. Shortly after preliminary underwriting and concluding that a proposed investment is highly attractive, we will draft a “conversational offer” which specifies the primary terms for a transaction. The next step is to visit the company and meet with management. A formal letter of intent is then issued with detailed specifics for completion of the transaction. Subsequent due diligence usually requires sixty days; the investment is completed as soon as legal documents are finalized.