In the lower middle market, Private Equity firms, VC funds, and strategic buyers are most often working with founder or family-owned businesses in search of new synergistic technologies, differentiated products, and financial growth. While this may be a routine aspect of capital investing, it is an incredibly unique and serious time in the life of a business owner. Most of these buyers have only just begun to understand the inner workings of the company whereas these entrepreneurs have been in the trenches putting out fires and forging new paths forward for decades and even centuries (in the case of legacy businesses). When it comes time to evaluate what is best for the future of their company, business owners have more than just the EBITDA multiple to consider.

It’s not uncommon, during the transition process, for owners to take a guarded and protective stance in the face of what can easily feel like an adversarial transaction dynamic. Many of the founders and families that Artemis has encountered have been working shoulder to shoulder with their employees for decades. They know their families, they’ve overcome adversity together, and are more than just employees and employer.

It’s natural for owners to feel this way (MelCap Partners Archives – Smart Business Magazine (sbnonline.com)). Private Equity firms, VC Funds, and strategic buyers will each bring a different financial offer alongside a different vision for the future of the business. Most business owners have heard of the black marks on the Private Equity legacy that the industry is working to repair, they’ve watched as their businesses and employees disappear into overgrown strategics, and they’ve invited in Venture Capitalists only to find themselves with less control and ownership of their companies. The M&A investing industry, inclusive of all these buyers, navigates the transaction and transition processes in different ways. 

12 years ago, Artemis stepped into this ecosystem to try and pave a different path forward. As business owners try to pierce the facade that separates what their buyers say they are going to do from what they are actually going to do, Artemis has built its reputation on values like transparency, commitment, accountability, honesty, and integrity (Our Vision – Artemis (artemislp.com)) to demonstrate to every potential Industrial Tech Partner that – with us – what you see is what you get. Through our “Partners in Growth” operating and transaction philosophy, Artemis utilizes every moment of the transition process to:

1.  Align with the legacy values of each prospective portfolio company and its ownership – to ensure that we don’t mess up what made the business great in the first place; 
2.  Communicate a vision for the future of the business as Artemis seeks to enable revolutionary and customer-centric strategic development; 
3.  Establish strategies that empower employees to achieve their full potential – because engaged employees are essential to the growth and success we target (Examining the Relationship Between Workplace Satisfaction and Productivity | Inc.com); 
4.  Augment or build out highly qualified teams centered around growth, expansion, and success for the business and all of its employees.

Over the next four weeks, Artemis plans to release the rest of “The Artemis Approach” series where we communicate our unique Business Owner First mentality through an explanation of each one of the transition strategies. Be sure to follow Artemis on LinkedIn and check back on the website (www.artemislp.com) to keep an eye out for our discussion of Maintaining the Legacy and Artemis’ differentiated approach amongst PE, VC, and Strategic peers.