The Social Value of Exit Plan Capital

By: Oscar Dayan

The finance world is typically regarded contemptuously as one that profits from others misfortunes, but that is clearly not the case with Exit Plan Capital. In the essence, what makes a business successful is the value others perceive on it, throughout this essay I would like to make it clear from that perspective the reason why EPC is successful.

Its mission should be seen from a perspective of opportunity, as that is its meaning for the hundreds of sellers who see it as an opportunity to end their or this particular business career.  Be it retirement, search for a new life path, or a simple business change, EPC provides not only the financial but also the psychological comfort to do so. Few things are more reassuring than knowing that your lifelong project is now in good hands and ready to be lifted and renovated by someone who is passionate about his business and your business, the principal Mike McGlade. In the words of Franklin Delano Roosevelt, “Happiness lies not in the mere possession of money. It lies in the joy of achievement, in the thrill of creative effort.” EPC recognizes that by making its mission to take care and grow your company, originated from your creative effort. On those lines, seeing it grow and thrive will be your joy of achievement, going way beyond the financial compensation received in the exit.

As it is a search fund, EPC can only acquire one company and thereby has to pass on myriads of others great opportunities. However, pass on does not mean abandon. The great business network that characterizes EPC is one in which entrepreneurs, private equity firms, and investment bankers interact to generate the most value. Therefore, those companies passed on by EPC are typically divulged and highlighted across its network, so that those entrepreneurs can be connected with ideal buyers for them. In a sense, it is like a person who gets married, and then arranges all of his friends amongst each other.  In sum, in the moment you get connected with EPC you are already winning.

The geographer Paul Vidal de la Blache, known as the founder of Human Geography, elaborated the idea that within a given framework comprised of your surroundings and influences, you can choose any path available. Likewise, within the framework of a search fund in the financial industry in New York, EPC chooses to set the moral standard high by seeking to create value for all parts involved. Cooperation, honesty, openness, and empathy are amongst the core values that enable this organization to thrive. It chooses the best paths available in the current figure, and the best part is that it influences others to do the same by adopting the same values, therefore positively affecting its environment.

The beauty of it is that its activities revolve around a win-win framework. Only through the collaboration with all stakeholders, EPC is going to be successful: entrepreneurs provides the opportunity to acquire their business, investment bankers and brokers constantly bring interesting deals to the principal’s attention, and private equity firms and other searchers constantly exchange information of deals that may fit well the other’s portfolio. Therefore the prevailing relationship between EPC and other stakeholders is one of cooperation and even interdependence.

Yes it is legitimate that some businesses succeed being a necessary evil, but that only lasts as long as the “necessary” remains true. EPC prefers to rather become a desirable good, where both the “desirable” and “good” can stand alone and guarantee great social and financial success. So yes, EPC will post very high ROIs and reward its investors far beyond the risk they undertook, and will do all of that in spite off, not despite, cooperating and creating value for all stakeholders.