Nextband is committed to helping our clients achieve maximum value through the sale of their business. Nextband focuses on several types of sell side engagements:

Partial Sale
Nextband assists majority shareholders of companies who have an opportunity to rapidly grow their businesses but do not have the capital or the risk appetite to do so. Under this scenario, members of the shareholder group sell a portion of their equity positions to a compatible investor, thereby increasing personal liquidity while funding the working capital needs of the business. Under this mechanism, the selling shareholders may retain a meaningful equity position and an active management role in the company. The expansion capital may, in turn, help to create more long-term value in the business than would otherwise have been possible.

Sale to Management Team (via ESOP)
Nextband works with majority shareholders or management groups who wish to effect a management buyout of a company. If the company and the selling shareholders are interested in pursuing a tax advantaged strategy with an ownership benefit for employees, we contemplate the use of an ESOP, or Employee Stock Ownership Plan, to complete such a buy out. Under an ESOP purchase, selling shareholders are allowed to indefinitely defer the gain on the sale of their stock if they reinvest the sales proceeds in qualified replacement property, or generally, stocks and bonds of U.S. operating companies. Contributions made by the company to the ESOP that provide the cash to service both the principal and interest portions of the acquisition debt are also tax deductible. Further, the ESOP serves as a retirement plan for employees, allocating stock into individual employee accounts as contributions are made.

Outright Sale
For any number of reasons, shareholders may decide that they would like to sell their business. Prior to pursuing a transaction, Nextband takes the time to fully understand the seller’s objectives and explore all available alternatives. Much like our capital raising efforts, we spend significant up-front time evaluating the company, looking for ways to position the company to generate the greatest value at the time of sale. THe greatest value may not be the highest price but perhaps an alignment with a knowledgeable partner who agrees to a structure supportive of the Founder and his/her family. Based on this analysis, we prepare materials to market the company for sale, focusing on communicating the defined strategy of the business and the potential upside available to the buyer based on initiatives the company has employed. We identify a list of potential buyers that are likely to find the most value in acquiring the company, and we develop a plan to efficiently and discretely market the sale. We then interact between the buyer and seller to successfully negotiate and close the sale.