When we help our clients selling their properties and businesses, we apply an innovative approach to attracting potential buyers and investors, which is based on the use of the Shared Ownership Investment (SOI) business model.
How it works
We find individual investors, assemble them in a group, and form a consortium that buys shares in the business owner's enterprise. Basically this means that the business owner invites new partners, who buy shares from him and become co-owners of the business.
Benefits of SOI model for business owners
For the business owner, selling shares to such consortium is not much different from selling to a sole investor, since he receives the funds all at once. At the same time, putting together a group of individual investors is faster and easier than finding a single major buyer, who would have the necessary financial recourses and who would be interested in your business. That is why the SOI model offers a great advantage.
The good thing about this model is that the business owner does not have to deal with each investor separately; he works with just one entity - a consortium representing the entire group of investors. The terms are very simple - if the consortium fails to collect the agreed amount, the transaction is cancelled. Or, alternatively, the business owner can offer other terms in exchange for the collected amount. Such approach gives the owner a lot of flexibility. He can either use the collected funds for injecting them into his business for further expansion and improvement, or he can just sell the business - partially or in whole. Such flexibility is another great advantage of the SOI model.
Benefits of SOI model for investors
From the individual investors' prospective, the SOI model is also very attractive, due to several reasons. First, this enables them to participate in a profitable investment project, which, otherwise, they would not be able to finance. Secondly, they can withdraw from the project at any time by selling their shares to another investor. Finally, making investments with this model is simple and risk free.
Real Estate Based (REB) Businesses
The main reason why this model is a safe investment lies in the nature of the projects that we work with. We select only those businesses where the large portion consists of commercial real estate and lands. This significantly decreases the investment risk as the overall value of a business is supported by hard assets. Moreover, we focus on businesses that have good potentials for expansion and improvement, which can add value and increase profit.
3R: Renovation, Repurposing & Rebranding
For each investment project that we select, we prepare a detailed development plan based on the 3R principle: Renovation, Repurposing & Rebranding.
Having in place such a solid plan helps convincing potential buyers that this can be a highly profitable investment for them. For example, when we work with the lodging industry, our investment projects can include renovation and redesign of small hotels and resorts, adding more rooms, targeting specific groups of guests who would pay higher rates, expanding seasonal use, offering additional services and entertainment, etc.We apply the same approach to other businesses as well. As a result, the investment projects that we select check all the boxes in the wish list of individual investors.
Overall, our goal is connecting such investors with the Real Estate Based (REB) Businesses, and make things work.
Blockchain Technology
In addition to the described advantages of the SOI model, we would like to emphasize that it is completely transparent and protects the interests of all parties involved. We actively use modern technologies like blockchain for this model in order to reduce the risks for all sides to the minimum.
BUSINESS MODEL