Are You at a Critical Juncture?

As the founder or CEO of a privately-owned company, you may be at a crossroads as you think about the future. Your company’s poised to go to the next level but may lack the infrastructure or financial resources to get there. Perhaps you’re ready to take some money out of — rather than put more money into — the business.

If you’re considering selling your business, Preservation Holdings is not your only choice. But it’s the only place you’ll find our combination of long-term decision making, stability, and experience. Even though you may be selling your business, we value what you've built and we want to build it further.

Our Beliefs

Do No Harm - All change is hard, especially change in ownership. Our first goal is to do no harm. As owner/operators we understand the importance of serving customers and employees faithfully, and we’ve lived long enough to see the consequences of hasty action.

People Focused - We view employees as family and believe in treating people well. We have no plans of changing salaries or benefits. If it's important to you, we'll put this commitment into writing and stand behind it.

Cultural Fit - Many business owners want 100% cash at close at top dollar. While there is nothing wrong with treating the sale of a business as a purely financial decision, we're likely not the right group to buy your company if the quality of future ownership isn't your top interest.

Unfortunately, many acquirers base their offers on cutting jobs, loading the business with non-recourse debt, and "flipping" the business in 3-4 years. That is not our approach.

If you are a part of the 10% of business owners who care about the long-term wellbeing of your employees, customers, and community, let's find a way to work together.

Fiscally Responsible - If we use debt at all, it will represent no more than 30% of the transaction. Our mandate prevents us from using excessive leverage.

Many of the potential buyers you're speaking with may be relying on a lending program sponsored by the SBA, allowing them to fund 90% of the purchase with debt. Many of these programs require the business seller to personally guarantee the loan.

Not only do we avoid the SBA, the majority of our businesses have no debt on their balance sheets.

Long-Term Mindset - We have no obligation to return capital, as 100% of the money we are investing is our own. This creates an environment of alignment and trust.

Many of the people you may be speaking with plan to sell your business again within 5 years. However, we plan to build your business into a platform that provides opportunities for your employees and your community. We have held onto companies for over 35 years and are believers in investing for the long-term.

Aligned Incentives - Due to the delicate nature of small business, we ask owners to re-invest a portion of their transaction proceeds into the business (or participate in some manner), to ensure a seamless transition. However, we understand your goal is to retire and we're committed to providing you a complete exit within 3 years or less.

Brand Advocates - While you may be exiting your business, we want to honor what you've built. We're committed to keeping your brand in place and honoring your legacy.

Frequently Asked Questions

What distinguishes us from other investors?

We are not here to flip, bundle, or cut staff. Our focus is on long-term returns and cash flow. With no mandate to return capital, we invest for the long-term and view every acquisition as part of a broader portfolio. We focus for fundamentally sound companies with local brand loyalty.

When is the right time to start a conversation with Preservation Holdings?

You may be at a crossroads in your business. Perhaps you’re considering retirement or seeking capital to expand operations, acquire another business, or change strategic direction. Whatever the reason, selling a business represents a significant personal decision for business owners. Preservation Holdings provides sellers with the flexibility and options for investment that meet your personal and business goals.

What makes Preservation Holdings different from other buyers?

We do not invest using a traditional fund structure and don’t have the pressure or time constraints to deploy capital. We invest our family capital, which allows us to be more discerning and hold the investment long term.

How does Preservation Holdings think about a founder’s legacy?

Because we partner with family-owned and founder-owned businesses, we have developed a keen appreciation for the unique challenges and considerations of transferring ownership to an outside party. We work closely with business owners to ensure a minimally disruptive transaction process and develop management and board roles that fit their post-closing needs.

What about the well-being of my employees?

We are relationship-driven investors and believe that alignment is the key to success. When we make an investment in a company, we strive to increase the wealth and value not only for the founder/owner, but also for the entire management team and company employees. We provide the infrastructure and support necessary for the company and its employees to achieve the fullest potential. As part of our structure, we provide a meaningful equity grant to the key members of the leadership team to ensure complete alignment of interests.

What role will I play as part of the transaction?

We work with founders to customize a role that is consistent with their personal goals and objectives. Prior to closing a transaction, we develop a comprehensive Value Creation Plan in collaboration with the business owner and the company’s leadership team. The purpose of the Value Creation Plan is to create a roadmap for growth — both organically and through acquisition, if appropriate — while ensuring that the culture and legacy of the business is preserved and enhanced.

Please contact us at info@preservationholdings.com