LV2 Equity Partners Transaction Types
We understand and look at each transaction as a unique situation. We specialize in the following scenarios:
LV2 Equity Partners will partner with existing management to lead an acquisition of a business. We can provide the owners with partial or complete liquidity and LV2 will support the management team with capital, vision and management skills.
In cases where a business no longer fits a company’s strategy a business may be “spun-off” to enhance total company value. LV2 can partner with the existing management team to establish the business as a stand-alone entity operating free from corporate bureaucracy. This restructuring will often allow a distinct business to thrive as an independent entity.
Often companies are confronted with great growth opportunities, but have limited or constrained financial means to take advantage of the situation. LV2 can help manage the growth as well as provide the equity investment necessary to fund it.
In situations where a company may be experiencing financial difficulties and further debt is not the answer, an equity investment may make sense. LV2 can implement the strategic and operational enhancements necessary to turn the company around in conjunction with investing in the business as an equity holder. This could take the form of a partnership with existing ownership, an outright purchase of assets in or out of bankruptcy, or a purchase of debt from a financial institution.
In cases of ownership dispersions, continuing to run the business can be extremely difficult with the diverging personal interests of distant shareholders. We will either purchase the business from the family or partner with certain family members to buy out all others. Our family succession transaction provides liquidity for departing shareholders and ensures continuity in operational control for family members remaining in managerial positions.
We work with the owner to purchase the business while meeting the owner’s liquidity, diversification and tax objectives. If possible, we would encourage the owner to be an investor in the business going forward and request his/her involvement in the transition period after purchase.