Be the Platform Company
What is a Platform Company? It is a company that serves as the foundation of a roll-up of multiple companies acquired from the same industry. The platform company accelerates its growth through integration of new systems, resources, and processes.
What is Crown Growth's role in the process? Our team conducts a thorough discovery process to evaluate the potential consolidation opportunity. We do a deep dive into the market, company, financials and current leadership. If we all see an opportunity, we build an investment thesis and strategic plan to best capitalize on the opportunity. Secondly, through our vetted Private Equity partnerships we identify the best partner(s) to bring in capital to fund the investment. Lastly, upon successfully securing capital our team participates in the ongoing M&A process for the market consolidation.
How does Crown Growth make money? There are no fees to the company we work with. Our work is based on a belief that the company has the (1) leadership, (2) organization structure and culture and (3) market opportunity that has a significant opportunity to scale. We make money upon the successful capital investment in the platform thesis by a Private Equity firm and the ongoing value creation of our direct involvement.
What is the entrepreneurs, CEO or leadership team's role in the new platform? We partner with teams who are ready to set their company on this growth trajectory. We work alongside the leadership team to support the acquisition and integration process and ensure a successful roll-up. Our role is to ensure the success of the entrepreneur’s vision.
How does it impact my current owners, partners or investors? Entrepreneurs maintain ownership in the new platform company. Funding is brought into the company for investments, which will impact levels of ownership. Part of our discovery process is to determine what the entrepreneurs, partners and investors (if any) want to accomplish, and how much liquidity they want to exercise.
It is common for valuation multiples of platform companies to be 50% or higher than stand-alone companies, which allow owners to take out liquidity while retaining similar equity value.
What are the benefits of a platform company? Entrepreneurs who want to build a company 10, 20 or even 100 times as large as their current one can do it through this proven strategy. We help companies fund significant growth and become stronger and larger competitors in their industry.
Our approach is a great opportunity for entrepreneurs who want to: