If a sale meets the strategic vision of our network, an ‘earn-deal’ can mean great added value. This unique financing formula of Retearn corporate finance, offers numerous possibilities and offers you as a shareholder a range of opportunities without giving up entrepreneurship.
Selling a business
In M&A one can roughly distinguish three types of transactions:
a. Individuals who do a management buy-in.
b. Companies (e.g. competition or colleagues) that make a strategic acquisition.
c. Investors (e.g. private equity firms)..
However, as an entrepreneur, it is not necessary to wait until you are approached by one of the above-mentioned types of buyer.
As a (family) entrepreneur you own 100% of the shares of a company, whether or not with business partners, but you want to safeguard part of the assets privately. The ‘ earn deal ‘ can be the solution.
You sell 100% to a new company. You reinvest in the new company yourself (≺ 50%) together with a number of new investors also joining in the story. We supplement the rest with the traditional acquisition financing of a bank.
An Earn Deal as an entrepreneur
Why wait to secure part of your pension now? Entrepreneurs often have a large imbalance in their wealth, whereby the (family) company almost always contains the entire capital.
It is important here that an earn deal immediately responds to a number of complaints and real threats and offers a large number of opportunities per return.
Capital
You safeguard your business assets
You reinvest in your own company as a shareholder
You anticipate a possible future tax on capital gains on shares
Strategic position
Management is strongly involved in the shareholder structure
You arrange your succession
Your network, strategic and competitive position is substantially strengthened
Your board of directors is held by active, professional and committed co-shareholders
Unburdening
Developing a strong strategic plan for the future
Retearn corporate finance, together with its professional partners, ensures the integral preparation, design, implementation and strict follow-up
Retearn corporate finance impedes, if necessary, a strong structure and works out an integral corporate governance story
An Earn Deal as an investor
You have built up assets and are looking for attractive investment opportunities. Investing in ‘ earn deals ‘ from retearn corporate finance offers you a number of great opportunities and is a valuable alternative to traditional investment opportunities.
It is important that retearn corporate finance only supports those companies with a strong track record, stable cash flow and active in conservative sectors.
Risk Spreading
An ‘ earn deal ‘ only invests in companies with a proven track record and quality management
Spread your investment via limited investment amounts per ‘ticket’
Great returns and a valuable alternative to the traditional (bank) investment forms
Transparency
Strong follow-up management and periodic reporting of investors
1-on-1 investment / no fragmented portfolio
Unburdening
Retearn corporate finance takes care of the complete preparation, valuation, negotiation and final realisation of the deal
Top-level expertise in financial, tax and legal matters, taking into account a strong code of ethics in the field of corporate governance
The Earn Deal in practice
Enterprise
| Turnover | € 5.000 K |
| EBITDA | € 800 K |
| Equity value | € 4.000 K |
The company with a turnover of € 5.000K and an EBITDA of € 800K is sold for a Transaction value of € 4.000K
THE NEW ‘HOLDING CO’ STRUCTURE :
| Capital | € 800 K |
| Shareholder loan | € 1.200 K |
| Bank financing | € 2.000 K |
The newly established ‘Holding Co’ buys 100% of the shares, 50% by own resources (capital and shareholder loans) and 50% through bank financing.
Entrepreneur
| START | EXIT 5J. | RETURN | |
|---|---|---|---|
| Total | € 4.000 K | € 5.650 K | |
| Cash | € 3.100 K | € 3.772 K | 4 % |
| Loan @ 'Holding Co' | € 540 K | € 689 K | 5 % |
| Capital | € 360 K | € 1.189 K | 27 % |
The Entrepreneur takes a 45% interest in the new “Holding Co” by investing € 360K capital and € 540K shareholder loan. He will keep € 3,100K (77.5%!) of the initial sale price.
Investor
| START | EXIT 5J. | RETURN | |
|---|---|---|---|
| Loan @ 'Holding Co' | € 60 K | € 77 K | 5% |
| Capital | € 40 K | € 132 K | 27% |
11 “Tickets” of € 100K are sold to the Investors consisting out of € 40K capital and € 60K shareholder Loan. This means a total of 55% of the shares of “Holding Co”.
