Alex Loukas, Managing Director at GrowthPoint, describes how GrowthPoint helps clients with the M&A process.
“Potential clients come to us typically at an inflection point in their growth or the stage of their business. They may or may not have raised capital. The business is growing, and they’re at this point where they say, I’m getting a ton of inbound interest from investors, from acquirers and I could either raise capital, I could either sell my business, I could do this on my own.
These are typical questions that potential clients have and why should we work with someone like GrowthPoint in order to maximize value? And the answer that I have is, as a founder, as a CEO, we often like to say CEO stands for Chief Explorer of Options, you should explore these options, but you should also focus on executing and running your business.
That is what you are specialized in. We are specialized in maximizing the value of your private stock, and most of our clients get loads of inbound interest, but they can’t manage all that inbound interest at the same time as running their business properly and we take that burden off your shoulders. We bring a number of interested parties together at the same time to create competitive tension, which drives up the value of your business at the end of the day.
You know, when it comes to managing different investors or different founders, often times our clients have differing levels of priorities. Some founders might want to stay within the business. Some founders might want to sell all their shares in the business. Some are interested in both raising capital or selling their business. And all these different priorities make it really challenging for founders and businesses to determine how do we do this and how do we do this well.
And that’s where GrowthPoint steps in as we take that burden, as I mentioned, off your shoulders. We structure a process that maximizes values for all shareholders. Our job at the end of the day is to bring you a number of deals that are strategic, but those deals might look different. Some might be investments, some might be acquisitions, some might be full cash buyouts on day one, some might have roll over equity and looking at all these different options gives the board and the shareholders the credibility to say, we’ve explored the market, we have a number of amazing potential opportunities that have been put in front of us and which path do we want to go down. So GrowthPoint’s job is to maximize the valuation of your business, minimize the impact on the business so that you can run it successfully and maximize leverage for the selling shareholders to push these parties against each other and have the best terms and valuation outcome for everyone involved.”