Aaron Stahl recently sold his company to an independent sponsor. Here's why.
Why he sold:
• Eggs-in-one basket: As the business grew, his net worth was predominantly tied up in it. He wanted to diversify.
• Aversion to risk. As a business owner, with his net worth tied up in it, his best way of diversifying was distributions, at the expense of investing into the business for expansion. A new owner will not have this aversion and be more inclined to invest for growth, for the benefit of shareholders and employees.
• He doesn't love operating. He's good at it, but it's not his passion.
• Free up time; he deeply valued lifestyle and autonomy-of-time.
• A growth partner. Work with someone who can take the business to the next level.
Why he sold to an independent sponsor:
• PE funds were "shark"-y. Opaque terms. Low trust. Didn't want to partner.
• Searchers = Unproven operators. Nervous it wouldn't be great for the business.
• The formal process didn't produce the valuations he had hoped for.
• He didn't specifically sell to an independent sponsor. He sold to his long-time friend, who he had known for more than a decade. The trust was already there.
FYI: Minds Capital invested in this deal.
Send me a message if you're interested in learning more about P3 Cost Analysts and how they can help your business save on telecom, utilities, and other overhead. No charge, they only take a cut of realized savings.
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