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Investcorp White Paper Explores Liquidity Options for Family-Run Businesses

25 Apr 2019

Investcorp, a leading global provider and manager of alternative investment products, today released its latest Insights white paper, “Liquidity for Family-Run Businesses: A Guidebook for the Alternatives.” The paper examines various liquidity options available to family-run or founder-owned businesses, ranging from the sale of a business to a strategic buyer or alternatively to a private equity partnership, as well as the questions an owner should ask when considering a potential partner. The paper is co-authored by David Tayeh, Head of Private Equity North America, and Kirk Fleischer, Principal in Private Equity North America.

Within the white paper, Investcorp discusses the current environment for founders and explains why it believes that today’s current market conditions make it a great time for founder-owned businesses to consider a liquidity event, particularly a partnership with a private equity firm.

“Looking at the market, there has almost never been a better time for founders, particularly at mid-sized businesses, to consider a liquidity event. Between the growth in private equity and the availability of money from strategic investors and lenders, there is no shortage of options for founders as they evaluate the next steps for their businesses,” said David Tayeh, Head of Private Equity North America at Investcorp. “For founders, private equity can be a great option because we are not only able to offer businesses increased access to growth capital for future add-on acquisitions but can also provide subject matter expertise to help owners improve their businesses and become more competitive in the marketplace.”

Throughout recent years, private equity has experienced significant growth and expanded the range of solutions it is able to offer founders. In the white paper, Investcorp describes the different benefits private equity investors can provide to family- or founder-run businesses and specifically outlines case studies that demonstrate when each liquidity alternative is the best fit.      

Investcorp has a strong track record of investing in both founder-owned and family-run businesses throughout its more than 30-year history of investing in private equity. Investcorp’s most recent investments in founder-owned businesses include The Wrench Group, KS Group, ICR and United Talent Agency. More broadly, Investcorp's past and present portfolio of private equity investments includes more than 150 investments totaling over $36 billion in transaction value.

For more information, download the complete white paper here: https://bit.ly/2GF8XLV