A Progressive Liquidity Transaction is the ideal solution for business owners who desire to create liquidity and diversify risk, but who want to continue to profit from the future growth of the business.
As the name implies, this type of transaction permits a business owner to sell his or her company in phases. In the first phase, R.L. Hulett & Company identifies and negotiates with partners who understand your business, share your vision of its future growth potential and share a common culture. A selected partner purchases a portion of your business while you retain significant ownership – allowing you to convert a portion of your ownership into cash and diversify your risk. Your financial health is no longer primarily tied to the value of your business, yet you still have the opportunity to realize profit from its future growth.
In the next phase, you and your new partner work on improving the business to increase its value. Your new partner is often a passive advisor lending its knowledge and strategic relationships to the business value building effort.
After the business value is increased, your partner can recapitalize the business and cash you out, or the business can be sold to a third party. You and your partner realize the profit from the more valuable business that your collaborative effort has created.