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what
we do
Novastone Capital Advisors (NCA) is a global firm headquartered in Switzerland that solves succession challenges faced by small to medium-sized enterprises (SMEs) through our Operator-Led Search Fund Program.
We closely partner with experienced, mid-career entrepreneurs with deep industry knowledge to identify, acquire, and grow privately held companies across Europe, the U.S., and Canada. Our carefully selected searchers serve as the optimal solution to succession by providing the next generation of leadership and ownership for SMEs.
At NCA, our focus is on fostering mutual benefit, profitability, and growth for all stakeholders. Searchers benefit from NCA‘s support and partnership, enabling them to transition directly into owning and managing a small business. Existing business owners find an optimal solution to succession with experienced, funded searchers that proudly continue their company’s legacy and growth. Co-investors are presented with sound investment opportunities with historically high rates of success.
Search & acquisition process
search
Talented individuals that are admitted into the NCA program initially raise a small pool of capital to finance a 24-month research project with the sole objective of identifying an acquisition opportunity with an existing business owner.
Our NCA Searchers are mandated to search for well-established, profitable companies, usually in fragmented industries, with an estimated enterprise value between EUR 10 and EUR 35 million. While each NCA Searcher will conduct research in the industries they have pre-defined with their investors, our program was built with a bottom up approach. Please visit the below link for additional information about the type of companies we are looking for.
ACQUISITION
We know from our own experience what it takes to design, set up, and run a successful business. NCA actively oversees every step of the process and co-invests in each acquisition while supporting the sponsored NCA Searcher, who takes on a managerial role within the company post-acquisition.
NCA supports entrepreneurs in our ETA program with due diligence and negotiations for acquisition once a target company has been identified. NCA Searchers then present the deal to investors and solicit a second round of follow-on funding to support the acquisition. Upon acquisition, a shareholder's agreement is put in place between all involved co-investors and the NCA Searcher takes on management of the target company. A Board of Directors is set in place to further help create growth within target companies by maximizing existing talent, capital, and capabilities.
Value Creation
Post-acquisition, NCA Searchers typically operate acquired businesses over several years, managing the company for operational excellence, financial optimization, digitalization, and revenue growth.
Because our ETA program allows NCA Searchers to become the largest shareholder of the company during acquisition, we ensure our long-term commitment to the business legacy. NCA continues to support our searchers through active involvement in the company’s management and advising on financial matters, while co-investors continue to offer transaction and industry experience as board members alongside NCA.
FINANCIAL REWARDS
Our Operator-Led Search Fund Program generates mutually beneficial financial rewards for all stakeholders.
NCA’s highly specialized Operator-Led Search Fund Program offers co-investors the possibility to build a diversified portfolio of profitable and well-established companies, identified and managed by top-notch industry professionals in partnership with NCA. NCA Searchers benefit professionally by establishing a meaningful economic stake in an existing business legacy, and existing businesses can rest assured that we’re in it for the long haul, with NCA talent incentivized to optimize long-term growth as they become the largest shareholder.
