Letter to founders
Dear Founders and Entrepreneurs,
Thinking about selling your business? This open letter is for you. And if you're just curious about what 42 Software is all about, this should help too.
Our Motivations
We started 42 Software because working with niche software businesses is one of the best jobs in the world! We genuinely believe that what you provide has real value and benefits your customers and offers your team the opportunity to enjoy work and use their experience and knowledge for good. We want to feel good about the work we do, and we think partnering with you will bring significant value for everyone involved.
We love collaborating with business owners because we’ve been in your shoes. We’ve built, owned, and grown businesses ourselves. The mix of a deep, trusting relationship between company and customer, real expertise, fresh takes on risk and experimentation, and a laser focus on long-term growth can lead to amazing results for both businesses and individuals.
You probably get approached by people like us all the time. So, what sets us apart?
Why Is 42 Software The Answer?
The answer lies within another question. Why do we focus on long term value creation more than others? The simple answer is because we can. We are lucky to be funded by a Private Equity fund which is already successful and owns a diverse portfolio of software and data driven businesses. This means we aren’t incentivised to make a quick return; we are incentivised to make a sustainable return. This means that we behave like partners and investors focused on the long term.
This is our DNA. That means we can and do behave differently.
Our Offer
Some of you are looking to sell your business and just step away. If that’s your goal, it makes sense to bring in an advisor, kick off an auction process, and get the highest price. Smart move, and we get it. Please make sure your advisor gets in touch with us when they take you to market, we will still offer a competitive price which we will not chip away at!
But we think there’s more to it. Maybe you’re looking for a ‘running mate’. Leading a business can be isolating and having a supportive partner will make it a lot more enjoyable, especially if you’ve been at it for a while. You may be taking fewer risks, worry too much about the negatives, and just want a reset. Taking some money out, securing your family’s financial future, and finding the joy in business again are all valid reasons to seek a partner. Others recognise that as the business grows, so do the managerial needs, and we can help there.
All these reasons need to be acknowledged, talked about, and addressed. Many founders aren’t sure what they want but know something needs to change. A one size fits all investment approach won’t cut it. They need a tailored solution, and that’s where we step in.
No matter what business owners need, almost all share a deep pride in their work—their team, their customers, and their products or services. It’s only natural to want a partner who will share that pride and care for the business and its people as much as you do.
Your legacy is safe with us.
Value Is Important
While the topic of finances should not be overlooked, we’ve often heard business owners assert, “It’s not about the money.” We challenge this notion, a more accurate statement would be, “It’s not just about the money.” We have yet to meet a founder willing to sell shares below what they consider a fair value.
42 Software’s mission lies in combining a fair price with an enduring partnership. This approach satisfies the dual objectives of securing a stable future for the business while addressing your return on the investments made in your business.
We commit to upholding our initial offer, without any holdbacks intended to diminish the initial consideration.
The Pitch…
You’ll sell your business once, our objective is to be a fair, transparent and constructive buyer and support your business for years to come.
We have a simple offer which we try and sell at a fair price and we strive to nurture our portfolio partners. And we only work with people we like. Which is why we enjoy it so much.
I would love to hear about what makes your business valued by its customers and employees.