From time to time, many owners and managers of small businesses consider the option of selling all or part of their companies for capital procurement purposes. They become anxious about having most, if not all, of their net worth at risk in the business. A multitude of concerns often conspire to make them postpone taking any action. They worry that they might not get the maximum price if they sell now and more importantly, they sense that they are not finished with their work. The builder in them wants to keep expanding the business, not just to create greater value but also to satisfy the innate entrepreneurial urge to enlarge the vision. Succinctly, the desire is to preserve their accumulated wealth and keep building for the future.
Wakabayashi Fund has developed a specialty in associating with such owners and managers and helping them resolve the conflict between their personal financial goals and the needs of the business.
Wakabayashi Fund may invest on a principal basis and acts in an agency capacity to procure capital for profitable small-cap and mid-cap companies. We attempt to structure a financing so that owners and managers continue to lead their enterprises and participate in the rewards of future growth, while at the same time achieving the liquidity to diversify their personal holdings and fund the next round of company expansion. We help build value by working with professional managers and entrepreneurs to achieve liquidity, to implement operating improvements for the businesses and to realize short and long term strategic and financial goals.
Wakabayashi Fund’s goal is to provide or arrange for liquidity and private equity capital for managers and owners of companies with revenues of $500,000 or more.
We provide senior management and operating experience in a variety of industries with the financial and investment know-how of private equity professionals. We bring to a portfolio company sophisticated financial expertise combined with valuable operating insight. We afford experience in building companies along with the experience in raising capital and providing short-term liquidity. Additionally, we would like to think of ourselves as an ongoing asset for owners and managers, providing them with assistance and instructions in the following areas:
• Market making assistance and support in dealing with broker / dealers
• “Buy-side / Sell-side” coverage
• Corporate development strategy
• Incorporating best practices from other industries
• Making the introductions that help companies grow and succeed
Wakabayashi Fund’s principals have successfully invested in a wide range of industries with particular focus on buildup and consolidations. Our objective is to provide short / long term liquidity and recapitalize companies in cooperation with professional management, thereby building long-term value. Our preference is for profitable companies or those that possess trajectory technologies. Additionally, at the other end of the spectrum, we are drawn to basic manufacturing, service and distribution businesses in fragmented industries where technology development is not the key requirement for success. The aforementioned criteria permit Wakabayashi Fund to invest and procure capital in a broad cross-section of companies and industries.
Wakabayashi Fund is dedicated to assisting managers and owners in achieving their financial, operating and liquidity goals. We accomplish this by working closely with a portfolio company to:
• Develop strong relationships with all levels of management
• Set strategic and operating objectives with management and the board
• Add to shareholder base, thus potentially adding to liquidity and increased market capitalization
• Incorporate market-maker support both retail and wholesale
• Facilitate and introduce industry experts and appropriate outside resources to management
• Assist with acquisitions and other corporate finance needs
Through extensive operating and venture capital investing experience, we have access to a network of contacts in professional organizations and financial institutions that are often useful to the client. Our financial network includes other venture capitalists, hedge funds, bankers, asset-based lenders and investment banking firms.