Investment Profile
Types of Transactions
Majority Sales:
When an existing owner of a company is seeking to sell a majority ownership interest, Nicolet Capital can be a very desirable buyer. We appreciate the significance of this event both financially and, often, personally for the seller. Nicolet Capital will work hard to provide the timely and straight-forward feedback throughout the process that sellers deserve when making a decision of such importance. We will also spend considerable time understanding the goals and objectives of the sellers and management. This allows us to develop effective management incentive plans and address a variety of tax and other considerations which, if left to the end of the process, often create unnecessary anxiety or delay in closing. Lastly, Nicolet Capital's ability to provide committed debt financing in addition to our equity investment offers several benefits both during the transaction process and post-closing.
Minority Recapitalizations:
Nicolet Capital has a genuine desire to make non-control equity investments. In these situations, Nicolet Capital's equity can be used to facilitate a number of different purposes including:
- Reduce debt from prior acquisitions or growth and which may have been incurred at a time when the capital markets or business cycle was more robust. Nicolet Capital's equity can provide the liquidity and balance sheet flexibility necessary to ensure the continued focus on normal operations, vital on-going investment, customer satisfaction and other business fundamental that create long-term value.
- The investment in a business often represents the single largest asset for the owners. Nicolet Capital's equity can provide the funds to make a dividend to the company's owners at the current tax advantaged dividend rates. This allows the current owners to diversify their personal wealth, maintain operational and strategic control over the business and benefit from future appreciation in business value.
- In many companies, both public and private, particular shareholders have different objectives or varied levels of interest in the direction of the business. These differences may arise as a result of generational changes, family considerations, the requirements of existing financial investors, changes in equity markets since the company went public or many other factors. Regardless of the underlying need, Nicolet Capital's equity investment can allow the company and its continuing owners to consolidate the shareholder base through a private repurchase or tender offer.
Minority Growth Capital:
Nicolet Capital will consider non-control equity investments to support a variety of acquisition and internal growth opportunities. We may also be asked to provide acquisition due diligence assistance, strategic input or simply serve as a constructive sounding board with respect to the growth plans that we support. After Nicolet Capital makes its initial investment, we are eager to participate in the value-creation process in those areas where our prior experience may be helpful. Moreover, we have the capacity to provide follow-on capital quickly and efficiently to support the future growth activities of the business. Our ability to provide committed debt financing in addition to our equity investment makes us a particularly attractive financial partner because we are able to provide a wide range of flexible capital as the needs of the business change.