8/23/2023 0 Comments Best friends pet hotel![]() It not only gives our people a great wealth building opportunity but enables them to strengthen their relationships with our pet parents by communicating the value of being an employee owner. “The ESOP structure has a natural synergy for our relationship-centric business. “Partnering with Mosaic in our transaction was a tremendously positive outcome for our company and most importantly for our team,” says Jared Pinsker, CEO of Best Friends. Additionally, Mosaic helped Best Friends take advantage of the Certified Employee-Owned logo to communicate its new ownership to customers. Already, they have partnered in locating a new headquarters, hiring a finance team, and developing an app for customers - investments that will drive profitability that ultimately builds wealth for the employees. But in its role as a major investor, Mosaic sits on the board and is working with management to ensure a smooth transition and accelerate growth where possible. Unlike a traditional private equity firm, Mosaic does not own Best Friends. We were able to provide the current owners with the cash they needed from the sale, and we can now use our resources and expertise to help build out the business so that it provides long-term value to the employees.” Without the capital we provided, Best Friends would not have had the opportunity to become an ESOP. Ian Mohler, Principal at Mosaic Capital Partners and the lead for the Pet Hotel deal, says, “This is the perfect example of how our kind of firm can help to grow employee ownership. Without the capital we provided, Best Friends would not have had the opportunity to become an ESOP.” “This is the perfect example of how our kind of firm can help to grow employee ownership. In doing so, they will benefit from one of the key advantages of an ESOP Trust owning the business: namely, that the business doesn’t pay income tax - leaving more cash to pay off the investors and reinvest in the business. Over the next five years, Mosaic will help the business to grow while the ESOP will use the company’s profits to pay off the loan. In the case of Best Friends, Mosaic used its ESOP expertise to help management set up an ESOP Trust and then raised the capital necessary for the ESOP to buy out the owners. Unlike traditional private equity firms, Mosaic focuses on ESOP deals, helping to fund and structure firm buyouts for the company’s employees. ![]() Mosaic is an employee-ownership focused private equity firm based in Charlotte, North Carolina, whose first fund manages over $164 million. That’s where Mosaic Capital Partners comes in. Since traditional ESOP transactions often require that sellers wait five to ten years to recoup the full cash value of the business, selling to the employees was an unlikely option. ![]() When the owners of the business decided that they wanted to sell the Pet Hotel, they sought out an all-cash buyer. It’s recent transition to employee ownership provides an interesting case study of the role of finance in these transactions. Every day, pet owners trust the devoted staff of Best Friends to care for their furry family members. Mosaic Capital Partners Leads Conversion to Employee Ownershipīest Friends Pet Hotel is a growing pet boarding, day care, grooming and training business, with 30 locations throughout the country.
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