Liquidity Solution for Equity Stakes
At non-listed companies and some listed companies, the liquidity of shares is significantly lower than most listed companies, so it is difficult for existing shareholders to securitize their shareholdings. Additionally, M&As that involve the transfer of management control are still carried out with relative infrequency in Japan compared to Europe and the United States. We provide existing shareholders and investors with liquidity and solve the capital structure issues of listed and non-listed companies.
We actively seek secondary investment opportunities and situations where we can provide solutions such as acquiring shares held by a business partner with which there is a waning relationship, a founder who is no longer involved in the business, or an employee who has retired; pooling shares that have become dispersed and fragmented over time; facilitating the succession of a non-family member with scarce financial resources; or shoring up the capital base through a recapitalization.
We build relationships of trust with management to understand the business of the companies in which we invest. We have made it our motto to think about the most desirable capital structure for the company. Moreover, we utilize our personnel and outside sources to provide management support for improving the management foundation as necessary.
- Examples of fund-based capitalization strategy support
- Consolidation of scattered minority shareholders
- Support for implementation of MBO and M&As
- Support for listing of stock and capital tie-ups with business partners
- Examples of fund-based capital provision
- Selling of own company shares
- Addressing of risk of diffusion of share ownership accompanying succession, etc.
- Improving of asset efficiency through conversion of real estate and other asset holdings into cash
- Fundraising when successors acquire shares
Acquisition of minority stake in business company equity
A customer wants to sell shares of a former business partner with which they no longer have dealings in order to promote selection and concentration of the business, but it is a minority stake, so it is difficult to find a buyer
- The company in question is a manufacturer whose largest shareholder is a major corporation. It had a large share of the domestic market in a certain field, but it no longer has dealings with the major corporation, and it has decided to sell it shares.
- Support for the largest shareholder’s sale and securing a new long-term shareholder were required in order to ensure the preservation of credit and the stability of management.
- Ant Capital Partners took over the shares from the largest shareholder and preserved the company’s credit. After the investment, Ant Capital Partners promoted business tie-ups with companies that would provide operational synergy with the company, selected a trustworthy candidate to which to transfer its stake along with those of other shareholders wishing to sell and entered into negotiations.
Acquisition of dispersed shares in family firm
Due to business succession by the founder of the company, shares became dispersed among family members not directly involved in the business, creating inconsistency between ownership and management, which led to weakening of management
- The company in question had an excellent financial base as a highly profitable domestic manufacturer, but due to business succession by the founder, the shares became dispersed among family members not involved in management. Those family members requested that management buy back their shares, but much time had passed because they could not agree on a price.
- Much of management’s time was spent addressing this problem, and the negative impact gradually began to manifest itself in management of the company.
- As an external third party, Ant Capital Partners was able to engage in reasonable price negotiations with family members wishing to sell and acquired the shares. After the investment, advice was provided to the company on business strategies, and shares were sold according to management’s wishes, contributing to management stabilization through consolidation of shares.
Funding for acquisition of shares by non-owner-manager
The business had grown steadily up to this point, and an internal management team had been trained, but there were no business successors among the family. If possible, they want the shares to be held by existing executives, but they do not have the funds to purchase the shares.
- The company in question grew its business steadily as a top manufacturer in a niche market. However, there were no successors within the owner’s family. The company was looking for a way to avoid the risk associated with a change in the management structure by having the current management remain involved in the management of the company rather than selling to a competitor.
- However, the company had considerable net assets, and the current management lacked the funds to transfer the shares at a price that would not create tax issues.
- Ant Capital Partners established a special purpose company using a scheme that combined ordinary and preferred shares. The current management took over the ordinary shares, and the fund took over the preferred shares. Ant Capital Partners provided the company with advice on management strategies, and over several years, the preferred shares were redeemed with the company’s cash flow. Ultimately, a management and employee buyout (MEBO) was achieved when the current management were the only remaining shareholders.