Private Company Acquisition

To find and acquire a company either to be run by a next generation family member or as an alternative investment for the family office is NexGenCos’ principal mission. Taking into consideration the next generation’s experience, education and training along with their interests is the initial step in finding a suitable fit for everyone involved. Working with the next generation, we develop a well-defined search plan, written acquisition criteria and a contact letter. In the end, the work product will be that of the next generation and he/she will feel a personal responsibility for it. The search itself is a collaborative effort with pre-assigned responsibilities including weekly progress reports and meetings. These progress review meetings are team oriented. In addition, progress reviews reporting to the first generation, led by the next generation, will be scheduled. The next generation entrepreneur is involved with every aspect of the acquisition process. Screening, selection and contact will be well defined, in advance, for risks involving price and the next generation entrepreneur’s comfort level. The next generation will have a workload and an active role in dealings with business brokers, owners and presidents, expression of interest letters, letters of intent, due diligence, deal structuring, and closing. NexGenCos works with the next generation in creating a financial structure that reflects the first generation’s level of interest and commitment. We also establish access to funding via banks, mezzanine, and other equity sources if needed. Working with the next generation, we will secure whatever it takes to achieve a successful closing.

The actual running of the newly acquired company will increasingly become the next generation entrepreneur’s responsibility. How well that transition takes place will be a testament to the quality fit we have achieved with the acquisition. That is not to say that NexGenCos involvement ends with the completion of the acquisition. As part of our contract we will develop a full-scale business plan including but not limited to strategy, organization, financing and budget. An extensive, detailed “First 100 Days Plan” along with a multi-year financial plan will be established. NexGenCos operates on the philosophy that the first 100 days are the most crucial to any exchange of ownership. NexGenCos participation in this critical period and beyond will be agreed upon during the business planning phase prior to the initial closing, in response to the clients’ desires and needs.