Next Step Partners LLC partners with business owners to execute mutually beneficial growth strategies and realize value through effective ownership transitions for middle market companies, their teams, and their owners. We believe that engaged leadership and active investors play a critical role in thriving businesses. Our operating experience, financial resources, and transaction expertise give business owners confidence that we will execute a smooth transition of ownership and ensure their legacy. We will value your team's expertise and long-term stability as we grow and preserve your company’s legacy together. While we prefer purchasing a controlling interest, we would consider purchasing a significant non-controlling interest in support of an aligned strategy, value creation plan, investment horizon, and governance model.
If you are an owner considering an ownership transition, we would enjoy a conversation about ways we can develop a customized transaction that addresses your personal, financial, and legacy objectives through:
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An outright sale
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Two-step process where you sell control yet remain engaged as an owner, key member of the leadership team, and/or advisor
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A partial sale of a large ownership interest while you maintain control, and we pursue a mutually agreed-upon strategy together
Target criteria:
- Approximately $2-5M of EBITDA
- Product/service with defensible market position
- Opportunity to grow revenue, profitability and cash flow
- Opportunity improve customer value through acquisitions
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Industries: Financial services/Fintech/Business Services; Specialty Chemicals; Advanced Manufacturing (metals and plastics); Specialty Packaging
Our Approach
Exploratory Conversations
Discussion about the business, strategies, value realization opportunity, and owner(s) business transition goals. Opportunity for business owner(s) and Next Step Partners to explore how our experience, professional network, and resources can accelerate the company's growth and achieve owner(s) transition objectives. We believe it is important to seek alignment of business owner(s) objectives, senior leadership's interests, and our investment approach early on. We want to move forward with business owners who see us as potential partners.
Our objective: Determining whether there is a potential foundation for partnership focused on long-term growth of the business and business owner(s) personal objectives.
Evaluating Our
Investment Case
Analysis of the company, industry dynamics, and financial growth opportunity. Next Step seeks to understand the leadership team's core strengths, assessing resources we can provide to enhance the success of the business going forward. Equally important will be identifying business owner(s) "legacy objectives." While it is not essential, we would embrace ongoing, aligned engagement of the owner(s) in the go-forward business.
Our objective: Understanding key drivers of operational success, identifying opportunities to accelerate growth, and exploring near-and long-term engagement objectives of owners.
Due Diligence
Detailed analysis of the business, financial, operational, legal, and tax aspects of the company to affirm the investment thesis and identify critical transaction structure considerations. The business owner(s) become comfortable with the terms of the transaction and plan for change in ownership.
Our Objective: Affirming our value creation plan, desired leadership dynamic going forward, and key transaction structure items.
Negotiation and Closing
Draft and execute legal agreements, while preparing for transition of ownership. Plan communication to the leadership team, other employees, key customers, and other partners critical to the company's ongoing success. Next Step believes it is important for business owners and the leadership team to play a visible, supportive role in an effective transition process.
Our objective: Ensure that members of the management team, employees, customers and other key stakeholders have confidence in the path forward.