A common thought among growing companies is that the infusion of capital is the key missing component that separates them from success. While this may be true in some cases, the cost and direct result of early-stage capital infusion is often an overleveraged and indebted company, or, where venture capital is used, the loss of managerial control and heavily diluted returns for the entrepreneurial founders. On the other hand, the necessity for early and growth-stage capital cannot be ignored.
When the professional services of a lawyer or accountant are needed to help business owners facilitate growth, limited resources prohibit retention of knowledgeable and experienced staff. More often than not, even the most talented business owner is faced with the choice between second-rate professionals or unsustainable cash flow burdens which drain capital from development opportunities. Even where the correct professionals are identified, their own competing demands between maximizing billable hours, while minimizing liability, tend to rest in direct conflict with the business owner. The end product of these inescapable pitfalls can be foundering success and, at worst, business failure. Convergent Private Equity Partners views this business environment as an opportunity.
We have created a model based on the view that early and growth-stage companies must identify and retain the assistance of professional development partners whose interests are directly aligned with the success of the enterprise. We recognize that a key distinction exists between the skillset of an owner/operator of a company and the professional service providers that understand the legal, regulatory, and financial framework. We believe our model is the solution and provides qualified companies with the professional expertise needed to grow; while affording them the ability to manage cash flows necessary for that sustainable growth to occur.
We view our role as that of a business partner whose focus comprises only those more technical, legal, financial, and administrative aspects of the business and distinguishable from core day-to-day operations. We do not take active involvement in the fundamental operations of the business because we recognize that the most capable person to manage the underlying business of the company is the owner. Our group, on the other hand, brings forth the legal, accounting, and business development expertise to propel and foster growth in a sustainable and compliant manner. It is important to note, however, that we are not brokers and are not interested in churning our clients or the value of their companies for the immediate payout. Rather, we seek to share in the risk and reward of long-term operations. Our interest remains in the identification and execution of strong business models which leave all the development partners better off. We understand the importance of dedication and recognize the harm distractions can pose. We accordingly take direct involvement in key aspects of the financial, accounting, and legal operations to permit business owners to focus on what they do best.