Taking Chips Off the Table: Exploring Minority Stake Sales
If you’re a founder looking to unlock liquidity without giving up control, a minority stake sale could be the perfect solution. In this video, we explore what it means to “take chips off the table” by selling a partial interest in your business while maintaining leadership and future upside. We break down the key differences between minority and majority sales, the types of investors involved, and how these deals are structured to fuel growth while reducing risk. If you’re considering a capital infusion or exploring growth opportunities, this is a must-watch!
Selling a business doesn’t always mean giving up control. In this deep dive, we explore minority stake sales—how they work, their advantages, and how they compare to full buyouts. If you’re looking for liquidity while keeping a leadership role, a minority stake sale could be your best move.
Key Takeaways:
What Is a Minority Stake Sale?
Unlike a full sale, a minority stake sale allows business owners to bring in investors while maintaining operational control. This provides growth capital and financial security without fully exiting the business.
How It’s Structured
Investors in minority deals might receive preferred stock, mezzanine loans, or other structured investments that provide returns while giving you flexibility. Understanding these options ensures you make the best decision for your company’s future.
Preparing for a Sale
Even for a minority stake sale, the process mirrors a full M&A deal. Expect non-disclosure agreements (NDAs), confidential information memorandums (CIMs), and investor due diligence before any transaction closes.
Finding the Right Investors
Growth capital firms and private equity players often participate in these deals. Choosing the right partner means aligning with an investor who supports your vision while offering valuable resources.
Minority Investors Today, Full Buyers Tomorrow?
Some investors who start with a minority stake might later acquire a majority interest. Positioning your company well now can keep future options open.
For founders who want to de-risk while retaining equity, minority stake sales provide an attractive path. Learn how to structure your deal, find the right investors, and set yourself up for long-term success.
