Vaughan Capital Advisors chooses to work with companies trading in M&A transactions between $25 million and $150 million. Why?

Because we are normally working very closely with the owner and operator of the business (“owner operator”). As such, we know that the business they own and operate represents their access to achieving both exciting corporate objectives and important personal objectives. We are working with people on transactions that matter to them.

We can be a new set of eyes and ears that help our customer win the game they are playing. First, we help our customers understand the game they are playing. All games have phases. For simplicity sake let’s agree that most games can be boiled down into two phases: offense and defense.

What we have learned about the psychology of the owner operator is they often move between major periods of playing offense and defense.

When most entrepreneurs start their businesses they are playing offense. They have taken in lots of information, usually after having worked at a very high level for another business owner. They have been a successful salesperson, engineer, or creative executive as an example. They see an opportunity create more value for themselves based on their unique ability. They have a strong belief that they can maximize their enjoyment of their work, and their financial rewards by starting their own company. So….they choose to forego fairly certain and often significant income, health benefits, stability, status and comfort to start their own company.

For the record, this is an amazing act of courage and a demonstration of one’s belief in themselves. They are taking a shot! They are taking their shot with the confidence that their lives will be better after having launched their own business than if they had continued to work for another person’s business.

Taking a shot = offense.

We find that most successful entrepreneurs typically accomplish amazing things on their voyage into the deep waters of self-determination and living an “eat what you kill, and only what you kill” lifestyle. Their senses are turned on, they are nakedly commercial, and they often have personal events in their lives that turn up the pressure: marriage, the birth of children, caring for aging parents, a new house accompanied by a “take a deep breath” mortgage. As the pressure mounts, they thrive.

Then right when they have accomplished everything they set out to do, the engine that they’ve built, their company, is running smoothly, they take their foot off the gas pedal. Why?

Because now they have something to protect. The house. The cars. The vacations. The country club membership. The private school tuition payments. The business now runs well enough to reasonably or comfortably take care of the owner operator’s lifestyle, responsibilities and obligations.

When you are protecting something, you are playing defense. Defense, by most definitions, has the effect of contracting something. It stops the energy of scoring.

Is the shift from offense to defense in success irrational? No.

Can you shift from defense back to offense without taking your points off the scoreboard? Yes!

This is where Vaughan Capital Advisors has been able to lead owner operators to their next great success.

We have found the right buyers and structured the right transactions that enable the owner operator to protect or “defend” their current lifestyle AND to start playing offense again. How?

We enable our customers to capture the value they have created in their company, AND to powerfully build new value with an investor based on their market knowledge, instincts and track record.

• We start with an evaluation of the unique abilities of the owner operators’ business;
• This is followed by a thorough examination of the kind of transaction that will enable the owner operator to capture the value necessary to satisfy the lifestyle and responsibilities they have, essentially de-risking their personal financial model; and
• We then find a strategic acquirer or financial investor who will pay a premium for the company’s unique ability, and who has the resources to amplify the unique ability of the business across new geographies and business verticals.

The day after the transaction, the owner operator is free to play offense again. Why?

They have sold all or a portion of their business and in doing so have secured significant proceeds in cash. The deal has been structure such that there are meaningful additional proceeds available if the business continues its strong performance. The owner operator, together with the investor, have set bigger goals and have the resources to accomplish them. New challenges await. The owner operator gets to grow again and do things that perhaps seemed impossible before. Or, to finish the metaphor, play offense again with a stronger team, more resources and more confidence.

Vaughan Capital Advisors exists to help the owner operator capture value from their past successes, and to play both offense and defense strategically.

We drive your empowered future by being an inquisitive and experienced set of eyes and ears capable of customizing a transaction that meets your specific needs.