Often the best strategic path for Seabrook Partners’ clients is not to sell the business but rather to raise growth capital to continue to grow the company. Seabrook Partners’ principals have experience raising capital for middle market companies in good, as well as challenging capital markets.
Choosing the Right Investment Partner
The ideal investment partner for our clients should bring more than simply capital to the transaction. It should also share in our client’s vision for the company and have a network of relationships that can benefit our client’s business post-transaction. Finally, there should be good chemistry between the investors and the owners and senior management of our client. The Seabrook Partners’ team has worked with venture capitalists and private equity firms for more than 20 years and has a good understanding of how these firms work with their portfolio companies. Our goal is not only to find capital for the transaction, but to help our client find the right partner to help grow the value of the company in the years following the transaction.
Private investment transactions can become extremely complex because venture capital and private equity investors have developed “creative” financing techniques over the years. This can sometimes lead to a significant adjustment in the valuation of the company in the months or years following the transaction and result in ownership dilution to the owners. Seabrook Partners’ transaction process seeks to create competitive tension among multiple investors that provides the client with negotiating leverage to choose the right partner with a fair valuation and reasonable terms and conditions.