When shareholders/owners of a business evaluate the possibility of selling their company, spinning off parts of the company or seeking external equity investments, it is important that they set up a clear strategy on beforehand. Their underlying motivation might range from e.g. succession planning to portfolio aspects or financial challenges and crisis management. Therefore the process can range from very rational to highly emotional considerations. In the transaction strategy phase MNI Partners typically assesses together with the shareholders/owners what they expect from an ideal buyer or investor: Should it be financial power only or should it also include e.g. networks across the supply chain, market and process knowledge and management support and escort?
Corporate investors are often from the same industry and might be competitors or neighbors in the supply chain. They typically know the business very well and either integrate the company into their own infrastructure or run it as stand-alone platform in line with their further growth strategy. Financial investors such as Private Equity Funds, Venture Capital Funds, Family Offices and Business Angels often escort their investments strategically and provide access to their own networks. They rarely interfere with the daily business but expect strong growth, predictable returns and they often intend to exit and sell their stakes after 3-10 years at a premium value to another investor, a corporate buyer or to the stock market (IPO).