Transitions are significant steps in a company’s life cycle. At Dakota Capital, we feel it is important to continue the legacy of the founder by retaining the Company’s name and securing the Company’s independence.
Dakota Capital provides stability as well as flexibility through the transition process. In response to the emotional and financial desires of the owner, we spend considerable time to understand the needs of the shareholders. Our attention to detail while maintaining a larger perspective enables us to craft solutions to most arising issues.
In the business of transactions, capital is a differentiating strength of Dakota Capital. We enable liquidity in an all cash purchase price by providing all the capital 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. We do not utilize banks; thus, our transactions are very quiet and confidential.
As long term investors, we do not go into an investment with a predefined exit or time frame. We view every venture with a ten year horizon and structure it accordingly.
Transferring to Management
In many entrepreneurial businesses, the founders recognize the success of their business has been facilitated by dedicated management teams. Transferring the company through a “Management Buyout” or MBO is an opportunity to reward managers who have built significant value over the years.
Ensuring management has significant equity and operating control of the Company is foremost in Dakota Capital’s philosophy and approach. Providing the financial resources to make this type of succession a reality is a mandate we embrace with great enthusiasm. We provide both the liquidity and growth capital to continue propelling the company to new levels.
Family businesses are unique organizations. Each has their own culture and ideologies that has made them successful. We understand how these factors come into play and the importance of continuing the legacy that made the operation successful.
In dealing with a family situation we have many tools and structuring opportunities which can achieve an estate freeze for tax purposes and leave operating control with the family member charged with growing the business.
For rapidly growing operations, opportunity and owner risk profiles do not necessarily coincide with one another. For that very reason, some shareholders decide to “lock in” on the value already built. Dakota Capital, through its IPO Alternative ™, enables a “second bite at the apple” by providing liquidity and continued ownership in the present with growth capital for the future.
This tax advantaged structure provides for the highest value realization on a risk adjusted basis. Operating control remains with management and the company is positioned to capitalize on the opportunities at hand.