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 Purchasing Stock From Owners
We have a long history of providing liquidity to successful entrepreneurs by purchasing a portion of their stock. In fact, 70% of our investments in the last decade have involved such purchases, usually including sales by the CEO. TA understands the seemingly contradictory objectives of partially cashing out while retaining majority ownership, and specializes in providing an alternative to a full sale or early public offering. These companies often share the following traits:
- Established, profitable companies with strong track records
- Entrepreneurs/managers who are interested in partial liquidity but are keen on retaining management control
- Entrepreneurs who have the majority of their personal assets tied up in the business, making them naturally more risk averse in their decision-making
- Entrepreneurs who seek to realize maximum values for their businesses through sale or an IPO
To meet your objectives, an investment structure would include:
- TA in either a minority or majority ownership position, depending on the amount of liquidity desired by the owner
- Liquidity financed with either equity or a combination of equity and prudent levels of debt (commonly known as a leveraged recapitalization)
- Debt potentially funded from TA's captive subordinated debt fund
Examples of Such Investments Include:
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