The core of NovaStone Capital Advisors The company’s mission is one that sympathizes with the challenges faced by family-owned businesses struggling with succession issues, and its goal is clear: to ensure a smooth transition of these businesses to a new generation of leaders.
NCA’s Entrepreneurship through Acquisition (ETA) program stands out from the traditional model by providing mid-career professionals with the support, tools and expertise to identify, acquire, manage and grow established small and medium-sized enterprises (SMEs).
What sets NCA apart is its robust business model, strategically designed to cater to a specific group of mid-career professionals. Participants embark on their business-leading journey with operational experience and a genuine passion for entrepreneurship.
While there are alternative options on the market, such as joining a traditional search fund or a private equity fund, NCA’s program combines the best of both worlds: participants seek out family-owned businesses to acquire a significant stake and receive similar support as a private equity fund.
Selection Process: Turning Mid-Career Professionals into Successful Entrepreneurs
Novastone’s rigorous selection process ensures that only the most qualified candidates are accepted into the ETA program. After more than 10 touchpoints and a three-month evaluation period, only around 1% of applicants make it through the selection process. Andrea Gaia Botton, who leads the Assessment Center team, emphasizes the importance of this process, explaining, “Our recruitment process is not just about finding qualified talent. It’s about identifying people who truly embody the entrepreneurial spirit and are committed to sustaining small businesses.” Once selected, candidates have access to unique resources, tools and ongoing support, increasing their chances of success in the complex business acquisition environment.
The ETA process unfolds methodically to comprehensively evaluate candidates based on the skills and industry experience they need to succeed as entrepreneurs. This careful selection process ensures that participants have the necessary qualifications and are aligned with the program’s mission of protecting family-owned businesses.
Resolving the succession problem: A win-win solution for business owners
At the heart of NCA’s impact is its ability to address the emotional and financial challenges faced by business owners who are retiring and looking to pass on their legacy. For these entrepreneurs, the NCA ETA program offers a more attractive alternative than selling to a competitor or a traditional private equity fund.
NCA has a track record of acquiring 16 companies due to the need for succession, and offers a solution that resonates with the emotional importance of these transitions: Christian Malek, Group CEO and Managing Partner, highlights that “the sale price of the business is crucial, along with the terms of the acquisition and who the new owners will be. This is an event that has great emotional meaning for them. The NCA ETA programme is an attractive solution for these entrepreneurs, allowing them to transition their business to new owners rather than selling to a competitor or a traditional private equity fund.”
Success story: From acquisition to sustainable growth
One of the most compelling aspects of NCA’s success is its ability to acquire companies and ensure sustainable growth. Its impact extends beyond the initial acquisition phase, with 94% of acquired companies being successfully handed over to program participants. In cases where the transition does not go smoothly, NCA actively works with the company’s board of directors to find a new CEO and ensure continuity.
Notable success stories include the acquisition of IAR Group Holding AG, which is a testament to the program’s effectiveness in securing profitable transactions. Sébastien Perrault, NCA’s first CEO, stated: Video Testimony Here are some actual results from the program.
Leadership, Culture and Innovation: The Pillars of NovaStone’s Success
NCA’s success is intricately woven into the fabric of its leadership team, with key members such as Daniel Gartner, Taylor Perry and Christopher Meyer playing central roles. The company’s organizational structure and culture are centered around a long-term compensation plan that is tied to the success of program participants, encouraging innovation, collaboration and growth.
NCA has achieved impressive results in a short period of time, acquiring over 16 portfolio companies and supporting approximately 40 NCA entrepreneurs or “searchers” seeking to acquire businesses with succession issues. The impact NCA has had on mid-career professionals, business owners and the broader community is clear. Not only does the program contribute to individual success stories, it also safeguards the traditions of family-owned businesses, ensuring their preservation and growth.
Reflecting on the transition, US-based founder Mark Pfeiffer, who sold his business to NCA entrepreneurs, said, “When I sold my business to NCA, one of the most important factors was how I was going to continue the company going forward. After the sale, I was freed from financial obligations and at the same time, I was able to work on something I loved.”
As NCA continues to redefine entrepreneurship and succession planning, its impact reaches beyond industry recognition. The company’s achievements are a testament to its commitment to turning challenges into opportunities and securing the future of foundational businesses in its communities.
Get on the road to success with Novastone Capital Advisors
In the dynamic world of entrepreneurship, NovaStone Capital Advisors With unparalleled expertise, they act as guides in navigating the complex challenges of succession planning. Through their ETA program, the company addresses the immediate needs of family-owned businesses and paves the way for a new generation of successful entrepreneurs.
As NCA continues to expand its reach and influence, it reaffirms its position as a leader in the private equity industry. Its acquisition success stories, the transformation journeys of its program participants, and its unwavering commitment to preserving the traditions of family-owned businesses paint a compelling picture of success.
For those looking to start their entrepreneurial journey through acquisition or seeking innovative solutions to succession issues, Novastone Capital Advisors stands out, guiding entrepreneurs and business owners towards a future characterized by succession and sustainability.
