For Executives & Entrepreneurs: Buying a Business

The rewards of buying a business are not simply financial. Bringing a product to a customer who receives value from it, providing jobs to employees, and developing creative processes that lower costs or increase speed and quality are all aspects of operating a business that deliver a well-deserved sense of personal accomplishment to business owners.

Teaming with a group of managers in an exciting transaction to buy and build a business is the primary reason that Pine Creek was formed. In fact, one of the founding partners of Pine Creek wrote a book on the subject. BUYOUT (Amacom, 2001) provides a blueprint for business executives who seek to buy the business they are currently operating or one that they are targeting. A review of a sampling of the contents of BUYOUT is an excellent way to understand the perspective of the Pine Creek team and the probability that we are completely qualified to assist in making your future.

An Appreciation of the Complexity. Just as managing a business requires a defined set of highly evolved skills, managing a transaction to acquire one calls for an equally complex basket of capabilities. The majority of managers who have acquired companies would agree that recruiting the right capital partner as a guide during the transaction and after could not be more critical. Acquiring a business requires the use of all available advice due to the personal importance and financial risk that accompanies these deals. The Pine Creek team, having structured over 30 prior transactions, is prepared to stand in partnership at your side to manage both the high and low points and complete what will probably be one of the most important accomplishments of your career.

Credibility of Your Capital Partner. We understand that the credibility of your financial partner is crucial in interactions with the seller. The Pine Creek team has successfully presented, in conjunction with the team we are backing, to the boards of corporations spinning off a division and to family and other owners who are assessing the crucial "ability-to-close" factor of a prospective buyer. The experience, investor list and immediate funding capability of Pine Creek are exactly the credentials required to surpass this important hurdle.

A True Partnership Approach. While the product, market, and financial components of each transaction are crucial determinants of success, our investment approach places the analysis of these items as a secondary task. Our first activity in analyzing an investment is assessing managers just as we would have managers assess us. We look for creativity, experience, drive and an understanding that successful partnerships require regular maintenance. After we move forward with a partner management team, an incentive plan consisting of substantive equity and other financial components is put in place to ensure that all will be amply rewarded by a successful outcome.

Making Your Future. Buying a business is typically the best route to realizing self ownership and pure entrepreneurialism. Pine Creek can provide capital and guidance as you seek to avoid the pitfalls and recognize the unique aspects of a transaction where you may have had no prior experience - buying the business you operate or one that you have targeted. Regardless of whether you are purchasing from private owners or buying out public shareholders to take a company private, our resources are delivered with confidentiality and speed. After the deal is completed, Pine Creek is a patient investor providing unobtrusive assistance to management and encouraging them to take the type of risks that are necessary to excel.

To find out more about Pine Creek and whether we are the right partner for you, please see About Us.