Every day, our M&A team speak and work with shareholders of software companies who we would love to welcome into our family. One topic that we find comes up quite frequently in conversation is our ethos of ‘buy and hold forever’ and what this means.
In a world of privately held companies M&A, where we operate, one size does not fit all. What we mean by this is that, when confronted with the sale of his/her software business, an entrepreneur may be faced with several options depending on the company’s size, growth prospects, client base and the vertical market segment within which it operates. Add to this the value expectations and aspirations of shareholders and choosing the right option may seem overwhelming at first.
Is money your main motivation?
Money can be a huge driver for some shareholders when evaluating the potential of exiting their business and, as a result, the company’s future, identity and brand justly take a back seat. In these cases, private equity investors and strategic buyers will be well suited to match value expectations as they will pay prices that justify acquiring assets or resources from the company that are strategically important to them.
The shareholder will receive the value he/she deserves, and the new owners or investors will use and carve the asset(s) of the company as they desire. Naturally, this can lead to brand dilution, merging of departments, headcount restrictions and other cost-saving optimisations that fundamentally change the business forever post-acquisition or investment.
Or do you want to strike a balance?
Other shareholders want to receive a fair value for their “sweat” and financial investment in the company they built, but they also want to secure continuity and longevity for the company’s brand identity and maintain the wellbeing and prospects of employees and clients. For these shareholders, the Vesta Software Group proposition may be an attractive option.
We acquire 100% of privately held software companies and hold them in perpetuity. No company in our family has been, or ever will be, sold. Our decentralised operational model ensures our member companies continue to operate under their own brand and identity, whilst their employees are presented with the career, development and growth opportunities that come from being part of a worldwide group operated by experts in software company management.
Straightforward options for the future
When welcomed into our family, business owners are given the opportunity to determine the future role they want to play. After being remunerated for their entrepreneurial success, they can stay with the group and help us to collectively deliver ongoing success over time as Group Leaders or Portfolio Managers. Alternatively, they can share in their companies’ continued growth with our support and reap additional benefits down the line. Others may prefer to hand over the reins of the business to existing employees who are ready to lead.
Under any of these simple scenarios, we are committed to minimising disruption to employees’ lives while ensuring the company’s brand and identity are maintained and strengthened.
This is what we mean by “buy and hold forever”.
We welcome the right companies and their employees into our family under transparent structures. We commit to their success and nurture the relationship so that we all win. Our new member companies keep their brand and identity, forever. More importantly, we truly believe employees are our most-valued assets – and that is certainly worth buying and holding onto, forever too.
If you would like to know more about joining the Vesta family, please get in touch.