Yes. RLJ will be a partner to help with growth opportunities and strategic decisions, but you will run the day-to-day operations.
We fully appreciate the investments and sacrifices you have made to create a solid core business with a good reputation and strong culture. With us, your legacy remains intact. We will do right by you. We will do right by your people and your team retains operational control of the business.
Structuring deals is much more of an art than a science. We ask management to contribute a portion of their proceeds into the new deal on the same terms as our investment. In addition, we award stock options to the management team when certain objectives are met. It is important to note that RLJ finances deals with a conservative level of debt in order to maximize the growth of your business.
We have successfully grown every company in our portfolio, current and exited. Aside from this, we have a unique advantage with Mr. Johnson as the head of our firm. We are able to leverage his relationships and Clevel access to help open doors within Fortune 500 companies for our portfolio companies. This helps in both gaining new customers as well as making your current relationships deeper and stronger.
Selling your business to a private equity firm offers a great opportunity to continue to grow your business and get a second bite at the apple.
Why Private Equity?
Again, a partnership with RLJ is more of an art than a science. We exit when we feel we have maximized shareholder value and when the business has achieved certain objectives. A typical hold period can be anywhere from three to five years.
We are preferred partners that will be collaborative in helping you grow your business, pay a competitive price, and have unique advantages other firms do not.
That is why we are here. We are the team that will help with the heavy lifting on the financial side of your business. You can focus on growing your business while we work with you to manage leverage and new lending relationships.
Not always. It is true that often times strategic acquirers will pay more. However, unless you are looking to exit the company completely, this is not the best option. With a sale to a strategic acquirer, you will most likely become an employee and no longer be an owner/operator. More often than not, continuing to grow your business and getting a second or third bite at the apple could be the most lucrative option.
Why Private Equity?