The most important success that every business owner strives to achieve is their successful exit. Financially, this is the basis that allows them to design the life and the work that they love.
It also allows them to transition from ‘private business’ to their ‘family office,’ which takes care of their wealth and their family’s activities and interests. Succeeding in an exit is also critical to protect the business itself from a decline and eventual failure, which has such negative consequences on owners, employees, their families, towns across the nation, and the economy.
But the process of buying and selling businesses is complex and can be fraught with challenges.
Founders Trust invests in and supports the growth of each of its companies in the long run, and this is its method for creating long-term value and sustainable success.
Founders Trust was recently announced as part of the “Global 100” for 2024. It was recognized with recent industry awards including “Best Middle Market Buyer – U.S.” from M&A Today’s “Global Awards.” These are a few of the most recent of Founders Trust’s current and past accolades.
CEO Views talked with Matt Williamson, Board Member at Founders Trust, to gain insights into how Founders Trust adds value to companies by supporting them with a long-term view.
Success without Layoffs or Conglomerations
One of the biggest concerns in selling a company is the disintegration of everything that the founder or owner has built over many years of decades of their life.
Layoffs are always a concern for sellers when they go to sell their company. Founders Trust is a unique buyer, whose strategy is to not to do layoffs and conglomerate.
“Hundreds of U.S. companies have slashed their workforces this year, including Amazon, Google, Meta and Disney,” reports Forbes on MSN. Recent layoffs also include Condé Nast, Splunk, and others.
Founders Trust is an investor with a unique approach to acquisitions, which involves growing and supporting companies independently, instead of consolidating them.
Admirer of Founders
Mr. Williamson explains, “Founders Trust is a big admirer of founders. People that start from scratch, people who essentially begin their business journey with nothing. Most of the time, they don’t even know the business that they are getting into, and they don’t have any connections.”
He continues, “Business owners build their companies from nothing. We have respect for these people. And we’re here to help them achieve their exit. They deserve to see their work and what
they believe in, to continue on. The employees also deserve to grow and be successful. We give a part of the ownership to the employees, and incentivize them. We support companies for success and growth, and give them what they need to do that.”
A Unique Buyer
Founders Trust is a different type of buyer. Mr. Williamson explains, “We are a unique buyer, and the preferred buyer of founders, essentially a ‘white knight’ type of buyer. When we buy businesses, they stay independent, and function autonomously as independent organizations, with our support with anything they need. We keep the employees and leadership team of the businesses we buy; we keep the culture, and we maintain the legacy of the creator.”
“We are not returns driven, we are quality of company driven: if it is a good quality company, then over time, long term value will be created,” he adds.
Acquisition Criteria
Founders Trust has very specific criteria for the businesses that they are interested in. “We buy middle market and lower middle market companies, with successful management in place, and a strong operating track record,” Mr. Williamson shares.
“We look for businesses with predictable cash flow and with a business model that is clear and understandable; profitable companies that have some successful history behind them. We’re not interested in start-ups because they do not have management in place which is already successful, with a history behind them.”
Reliable Acquisition Partner
Founders Trust maintains a seamless, transparent, and pre-defined acquisition process. Everyone knows what to expect, and when.
Mr. Williamson further illustrates, “When we reach the point that we have decided to submit an offer, the offer will be transparent, and will be explained in detail. There won’t be unclarified points that are going to be negotiated or defined or thought about later.”
Founders Trust works with sellers to agree on the Purchase Agreement and ancillary documents upfront, at the beginning of the process. This way, there are no surprises later on in the process. Everything is done transparently and upfront.
Physical & Mental FreedomTM
First, Founders Trust works with sellers who are retiring. Second, the company works with sellers who want to stay on working at the company, but only doing the part that they love, not the parts that they hate. Sellers want to achieve “Physical & Mental FreedomTM” in their lives by no longer having the weight and responsibility of the company squarely on their shoulders, but they want to continue staying on, and doing just the work that they love. “It really means moving up to a far better role in life, and a role that is on your own terms, that you have designed,” explains Mr. Williamson.
Third, Founders Trust is an excellent acquiror and partner in situations where an owner wants to continue working with the company, and wants to bring on a majority partner to really bring their
company to the next level of growth, with a partner with a vast amount of expertise and capability, and who is able to really take that company to the next level.
Structural Alignment of Interests
In each of these situations, Founders Trust works to create Structural Alignment of Interest between all parties, with a view to the long term, for a good working relationship, and the stability of the company in the long term.
Contact: Jon Adams
Company: Founders Trust
Web Address: www.founderstrust.org
