Breaking through the clouds

Breaking through the clouds

In our discussions with founders, we frequently hear stories that revolve around the confusion and uncertainty they face when offered private equity (PE) deals:

"I've spent years building my SaaS business, pouring in countless hours and resources to achieve the success we've seen today. But now that we're looking at potential growth opportunities, I've been approached by private equity firms offering to help us scale. The deals they're proposing seem complicated—full of terms like debt leverage, vendor loans, and roll-overs. I'm struggling to understand what these really mean for my future. How do these investments benefit me, and what do I actually stand to gain? It feels like the PE firm is setting itself up for a big payday while I'm left wondering if this is really the best path for me."

This sense of confusion and apprehension is common among founders who are presented with PE deals. The complexity of these deals often masks the true implications for founders, leading to uncertainty about the fairness of the arrangement. The questions that arise are critical:

• Why is debt leverage necessary, and what risks does it introduce to my business?

• What exactly are vendor loans and roll-overs, and how do they impact my financial future?

• Am I getting a fair share of the returns, or is the PE firm reaping the majority of the rewards from my hard work?

These concerns highlight a significant issue: many founders are unsure whether they’re entering a deal that truly benefits them, or if they’re setting themselves up to carry the risks while the PE firm walks away with the lion’s share of the profits. This uncertainty often leads founders to feel that, despite their efforts, they may end up holding the bag while PE managers and investors reap the rewards.

The HighMark Solution: Clarity, Fairness, and True Partnership

At HighMark, we believe in a different approach—one that puts clarity and fairness at the forefront. We understand that the complexity of PE deals can leave founders feeling uncertain about what they stand to gain and what risks they might be taking on. That’s why we prioritize transparency in everything we do.

In all fairness, our business model also relies on complicated structures like debt leverage, vendor loans, or roll-overs that can obscure the true value of your hard work. But, we provide clear, straightforward terms that show exactly what you can expect to earn based on your performance and the growth of your business. Our goal is to ensure that your success directly translates into financial rewards that are fair, according to your own assessment, and proportional to the effort you’ve put in.

We offer a deal structure where the returns are directly tied to the growth you achieve, ensuring that you’re not left shouldering the risks while others profit from your efforts. For example, we empower you to reinvest the earnings generated by your business into further growth and innovation, rather than diverting them into being only available for further acquisitions. This way, you retain control over your business’s future, and your hard work continues to drive value for you and your team.

If you’re facing the complexities of a PE deal and wondering whether it truly aligns with your goals, HighMark is here to offer an alternative. Let’s explore a partnership where your hard work is valued, your risks are minimized, and your rewards are fair and aligned with your vision for the future.