A strong ecosystem and a new concept of private equity, highlighting value creation through the implementation of strategic initiatives to enhance operations, revenue growth and capital structures.
Approximately 12 million US private companies are expected to change hands over the next 10 to 15 years, representing the largest intergenerational transfer of wealth in US history. 40% of these small and medium size enterprises are currently facing a succession problem and this future lack of leadership leaves companies in an uncertain and unstable situation, and blocks the growth opportunities they still have.
In Europe the situation is quite similar. The number of European SME business owners over the age of 60 continues to grow, from 12% at the beginning of the millennium to 51% in 2019. And 58% of those European SMEs have no succession plan. Facing the situation of a lack of succession with revenues in the range of USD 10 to 50 million can be hard to resolve.
In our more than 20 years of experience we have learn that finding outstanding CEO candidates takes time, but we have managed to create a strong network and we well know more than 80 expert managers, in the United States, Canada and Europe and companies with high grow potential. We just find the perfect match and in 24 months we have the company to be acquired and the convinced investors that will help continuing with value creation.
NovEta is an innovative way of entrepreneurship, a new approach through acquisition based on best practices and a hybrid solution between private equity and search fund industries. This is a taylor made methodology that allows family offices to invest and enter into low-risked private equity opportunities. The search fund model allows mid-career professionals to identify, acquire, grow, and exit established small to medium-sized businesses (SMEs) typically faced with succession challenges. And every project is carefully studied, based on value creation and has a clear exit.
We believe this chain drives growth in the lower middle market, benefiting family owned businesses, aspiring entrepreneurs and of course, investors. We also search for opportunities that have a positive social impact, make communities grow and help to maintain a more sustainable economy.