- page 9

9
DECEMBER 2016
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The Canadian Business Journal
“We are a methodology for a family business,
for an entrepreneur or founder-owned business,
to be able to do a meaningful monetization and
take advantage of the historical high multiples
that businesses trade at, and yet completely
keep their company in tact with no managerial
or staffing changes necessary. No leverages are
added to the company. It’s a permanent, passive,
long-term smart partnership,” notes Reid.
Evolution of Business
Investing
Fifteen years ago about 95% of owners in these
types of situations sold their companies, whereas
today it’s much closer to a 50-50 split. Reid says
there are several reasons for that noticeable shift
in trends. “First of all 60 is the new 50; people
love the engagement of being in business and
the challenges that come with it and electron-
ics and brand technology makes a big difference
how you can communicate.”
“Historically founder-run businesses haven’t
been aware of what options are out there,” adds
Padda. “The model that Stephen spearheaded
has been to address that kind of void in the mar-
ket. We are looking to revolutionize the approach
and concept of partnerships and how to invest.”
Reid, Padda and the entire professionally-
trained team at FA Capital have listened to
what entrepreneurs are thinking and feeling
in the marketplace and they are now vigor-
ously sending out the message that there are
in fact excellent alternative options beyond
the traditional methodologies they’ve become
accustomed to throughout their business
careers. The options are not limited to having to
either sell a business and be completely done
with it or getting no monetization and having to
bear 100% of the risk.
“We will give you enough monetization so
that you can provide your family with financial
security for the rest of your life, but at the same
time you still continue operating your business.
We’re here for support and not to look over your
shoulder as a Big Brother and dictate how you
run your business,” says Reid.
Founders Advantage Capital is still very much
in the formative stages of communicating and
marketing its exciting new model to the world
but is already living through the early stages of
having a significant amount of inbound interest
come through the door.
“Historically founder-run
businesses haven’t been aware
of what options are out there.
The model that Stephen
spearheaded has been to
address that kind of void in
the market. We are looking to
revolutionize the approach and
concept of partnerships and
how to invest.”
– Harpreet Padda, Senior VP & Co-Head,
Investments, FA Capital
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