A reflection on investment paths
Welcome to Ace Navigator, your companion guide to private company investment deal-making. In each chapter, we discover connection points where sophisticated investors and private businesses cross paths and explore the journey to connect with the right investment partner.
As the 2023 deal-making journey draws to a close and 2024's journey unfolds, it is worth taking a few moments to reflect on key moments, celebrate deal success, and carry lessons learned forward into new endeavors. Below is a collection of the full Ace Navigator series to date, inspired by paths we crossed with sophisticated investors and private business owners. #people-to-people
Family business succession
"Family business succession is a unique dynamic journey leading to the prosperity or destruction of legacies.."
"The business naturally becomes a part of the family's evolution as key family members trigger the beginning, build and grow overcoming challenges and eventually grant prosperity to all family members.."
"The controversial discussion: the young versus the older generation, the professional outsider versus the 'trusted' family member.."
"Behind people selection, family businesses face a range of decision makers: the Ace versus the Rookie, the long term evolution family focus versus shorter term 'employee' lifecycle, the firm discipline versus uncontrolled freedom, etc.."
"The majority of family businesses deteriorate with second generations, while disciplined succession plans have extended the successful evolution of businesses and shareholder wealth.."
Getting to know investment partners
"Do not worry too much about whether the right investor exists. Both sides of a good investment deal are already there and once they successfully connect, the deal will go through. As deal makers, we explore, discover and form the connection. It's a thrilling journey.."
"Partner with investors that appreciate and recognize you and your business. I have often seen investors look down on business owners who show they are in need of funds. A growing business is highly valued as a vehicle for capital growth, so capital needs you as much as you need them.."
"Get to know the investment team well. Each investment partner has a unique profile, signature and strategic value. Partner with investment partners that share your key values and ambitions.."
"The most active and seasoned investors make themselves accessible, open and warm throughout deal communications. They are keen on building good relations with business owners. If you find an investor that is rude, too slow in response, does not exchange information smoothly, or lacks consistency in the investment process then don't waste time and move on.."
"Most important of all, like the start of any relationship, trust the process, let the information flow smoothly and take a progressive approach as your partner shows more commitment and interest.."
"Partner with legacy investors that will have a long term positive impact on your company's growth and enhance your wealth.."
Revealing the hidden layers
"Only a full crystal clear picture can reveal the true potential, or threat, that lies behind an investment opportunity.."
"There is a wide range of agenda and people backing unrevealed data.."
"Avoid distractions. People have different ways of creating distractions to stir attention away from key information.."
"Have a conversation with the quiet people in the room.."
"The minor details lead to the big picture.."
"Foreign investors are often exploited by companies and third parties who seize to take advantage of language, culture and knowledge barriers.."
"A key part of discovering an investment opportunity is unravelling what lies beneath the surface.."
The Mergers Deal Strategy
"Successful mergers are built around people synergies.."
"We believe that the biggest sources of failure trace back to synergies between teams (people to people!).."
"It's important to let relations flow smoothly and transparently, and not skip major 'concerns' that both sides of the deal could carry through.."
".. the essence lies in the details of people relations which can be easily overlooked while everyone's excited about getting the deal through. This is especially evident with cross border M&As where culture, language and perspectives play an influential role in shaping team relationships and post M&A integration activities.."
Qualifying real deal partners
"Discovering new partners in uncharted territory holds many uncertainties. Stepping in gradually can allow you to close the gap between the known and unknown.."
"From time to time, we share concerns from investors and private business founders about non qualified parties on the opposite side of an investment deal.."
"It can definitely frustrate deal parties to the point of losing interest, submitting to poor investment terms or missing out on unique investment opportunities.."
"The higher the flow of initial meeting points, the higher the chances of finding the right investment partner."
"if you don't discover them first, your competition will eventually reach them.."
"There is no one size fits all for the first conversation.."
"Your potential partner should match your destination and together, you can discuss the path to get there.."
"Business founders carry a range of natural emotions when speaking with investors.."
"..it's important for investors and deal makers to take a proactive role and give business founders constructive feedback on deal preparations.."
"..Non committed parties usually like others to exert efforts while they watch in the background with no serious intention of placing serious commitments with investment partners.."
"After passing these simple stages, qualified deal parties can take discussions to the next level with fresh energy and focus. From this point on, deal making begins.."
Navigating new investment horizons
"Intentions create miracles.."
"Only a few unique founders carry solid intentions to draw a new investment path, driven by ambitions for higher value or realization of eminent threats.."
"Such intentions spark a series of Investment Deals and a myriad of emotions as founders leave comfort zones and shift to new territory.."
"..more success on the deal table in introducing investors to founders who carry such intentions as it drives them further towards successful deal closure.."
"..investors are continuously exploring markets waiting to discover the next ambitious founder and partner.."
"..some founders find themselves stuck in second gear.."
"..Ambitious investors are more attracted to agile models that adapt to market waves.."
"..too frequent and inconsistent investment decisions can lead to over-burn and deal fatigue.."
"..success on the investment horizon relies on the really good investment deal executed once in a company's life time, or once every (five) years.."
Orchestrating the Deal
"Every investor and private business shareholder deserves a well composed deal that orchestrates all the important pieces together in great harmony.."
"A well orchestrated deal is like a classic symphony that stands as a role model through the test of time and is a successful benchmark for industries and investment partners.."
"..Mistiming deal structure for a company with great potential can destroy shareholder value overtime.."
"Poorly designed investment deals, unfortunately, have turned good companies down.."
Cross-border investments
"Cross border investment deals carry a unique nature of exploration and discovery in the search for new growth opportunities beyond comfort zones.."
"Both investors and private business shareholders who engage in cross border deals experience stronger moments of anticipation, anxiety and excitement, face higher risks and invest more resources than their domestic counterparts.."
"Investing across borders brings a special flavor to deal making as it provides limitless possibilities and highlights the 'people to people' approach we embrace at Ace Corp.."
"..investors with global experience and active presence bring a wide range of benefits to companies.."
Investment exit strategy
"The sale of private company shares in an exit is one of the largest wealth-creating events for shareholders.."
"In some deals, shareholders can receive the equivalent of more than 10 years of annual profit distribution.."
"A successful investment exit strategy orchestrates several key elements that are worth focusing on, especially in what could be a once-in-a-lifetime event.."
"..It is quite painful to see founders who have grown companies for many long years incapable of enjoying the immense potential wealth or securing the future of their legacies.."
"An exit is not the best word to start a conversation with investors, nor with a company's internal (employees) and external (suppliers, clients, etc.) stakeholders.."
"It is essential to conduct a close assessment with company shareholders to check readiness, valuation path, and optimal path to exit.."
"..the true test of an investment cycle is the eventual exit to other investors who pick up, taking the company from one stage to the next.."
"..We don't recommend companies be sold to parties only to be destroyed after their owners exit; it sends a negative image to the entire investment industry and discourages continuous investment cycles.."
"It is essential for dealmakers to build a deep understanding of shareholder profiles and their motives for exits to advise on the best exit scenarios that align interests with future investors.."
"If signs of a potential failure appear, it is advisable to avoid an exit altogether and seek professional advice from seasoned investment bankers.."
Aligning investment paths
"Human behavior is essentially unique to each person and is influenced by their history, life events, personalities, and social influences, among other factors.."
"As investment deals are people-driven, aligning people to people is as important as aligning investment objectives and terms.."
"..people's emotions can cause companies to divert paths and lose alignment with investment partners.."
"..Diverted paths are spaghetti-shaped, open-ended, sporadic, never reach a desirable destination, and overburden businesses over time with incredible sunk costs..."
"Trust the process.."
"As long as owners focus on their main journey and draw paths between their current location and future destination, it becomes easier to align with future investment partners.."
Exploring growth paths with new investment partners
"There are unique investors who are approached for strategic value beyond access to funds.."
"As funds deploy capital to private businesses across industries, they accumulate value across a wide range of resources over time, unlocking great growth value.."
"One of the largest sources of wealth creation is the growth and exit of private business shares. Active private equity investors support this journey.."
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