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MCP Logo Momentum Capital Partners

You built something great -

We want to keep it that way

Why choose Momentum Capital Partners?

Many business owners have thought about what it would be like to sell their business. After years of very hard work, they obviously hope to pass the baton and be compensated for the enterprise value they created. It's important to consider the options that are out there for exiting a great company.

Private Equity

Typically, sellers think first of a private equity group as the most probable buyer. There are many of them in the world, and their job is to provide a return to their investors. Typically, a private equity group will heavily leverage the business, which will make the business more cost focused and can change the culture. They are also likely to ask the seller to stay onboard for a 3-5 years, on salary. To keep you incentivized, they will build an earn out into the transaction structure. They are buying a lot of companies, so if one doesn't work out, that's expected and normal for them. They will plan to sell the business again in 3 to 5 years, which can also give them short-term focus at the expense of long-term health.

Strategic Buyer

Many sellers would prefer to partner with a "strategic" buyer or a competitor. There can be great synergies between the businesses that make both of them better. However, merging similar departments can result in layoffs. And beyond functional integration, many sellers find that the cultures were hard to integrate. Sometimes, the new owners don't do business the way the seller would have liked. 

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Momentum Capital Partners is a great fit for sellers who care about their business, their employees, and their customers, but need to change the pace of their life. Given that the fund will only purchase one business, Momentum Capital Partners can offer a very customized and smooth transition and deal terms to meet the seller's needs. We use less leverage than most private equity firms because we want to keep cash available for growth. We don't require sellers to stay, but are open to letting them remain involved if they would prefer. Unlike a private equity buyer, Momentum is not making multiple bets. For us, this is extremely personal and this will be our only focus.

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