Who We Are
The Greybull Weekly digest is sponsored by Greybull Stewardship. Greybull Stewardship believes unique, well-managed companies are inspiring, positive examples, and a force for good in the world (especially for their customers, employees, vendors, and communities). We provide a perfect business investment partnership to these companies by providing support to our co-owners and a source of capital that allows companies to maintain their uniqueness.
We suggest that business owners seeking capital or a co-owner work diligently to find the right co-owner aligned with the goals and values of the company. Traditional Silicon Valley venture capital or Wall Street private equity is not the best fit for most companies in America. And strategic buyers/investors often have their own goals that are not aligned with those of the company.
Our purpose is to build a perfect home for outstanding businesses. First, this means do no harm. To me, that means not forcing things upon a company that are contradictory to the goals, values, and uniqueness of the company. Second, this means providing support as requested by our co-owners. We can help arrange financing. Help find a key hire to round out a management team. Help with an operational challenge. Help with an accounting question. Pitch in on a strategy discussion. The key thing here is that we respond as requested by our co-owners.
To build a perfect home for unique businesses, we had to develop a unique legal structure for our fund called an “evergreen” fund. There are several unique things about our fund that make it very different from traditional venture capital and private equity funds:
Our fund has no expiration date.
Most all funds have a 10-year fund life. This means that they need to invest their funds in years 1-5, grow those business investments as fast as possible, and exit all of them before the 10-year deadline. Of course, they can usually extend the deadline for a year or two if really necessary, but the clock is always ticking and the pressure never ceases on the managers of their portfolio companies. This scenario can work well for some businesses, but it is not ideal for the vast majority of high-quality companies.
Our fund can invest in flow-through tax entities (primarily limited liability companies).
Traditional venture capital and private equity funds must invest in C corporations because of constraints by the large institutional investors in most funds. The impact of this is that the companies in which they invest are driving toward a one-time exit event rather than distributing earnings along the way because of the tax inefficiency of distributions from a C corporation (double-tax). This strategy encourages companies to bet it all on fast growth and aim toward an “exit.” This is fine for some fast-growth, limited-profit businesses. It is not ideal for many companies.
Home runs and strikeouts.
With a ticking clock on their investment horizon and a tax structure that encourages one-time exits, the venture capital and private equity investors are motivated to swing for home runs. They do not mind a few strikeouts if some of their business investments are home runs. For their co-owners, however, the risk of a strikeout is not good. This is particularly true if the company is your life’s work and largest asset. The owner’s interest is not aligned with the Silicon Valley venture capitalists or the Wall Street private equity firms.
If you are a business owner who appreciates unique business opportunities and prefers a different strategy from that of the traditional fund structures and formulas, then you will love working with Greybull Stewardship.
What We Do
The GB Weekly digest was created to serve the knowledge needs of today’s business owner and his or her impacted schedule. Arriving each week at the same time in an easy-to-consume format, the GB digest is professionally curated specifically for people looking to stay current with what they need to know about running a successful business without taking too much of their time away from the business they run. Built to be scanned in seconds and yet provide up to 45 minutes of high-value knowledge, the GB digest is like having a personal research team on staff.
4 Things You Need to Know
A business doesn’t really thrive unless its employees do, too. Mind the needs of your people and watch your business soar.
Mission defines strategy and strategy defines structure. Revisit your plan frequently and make yourself accountable to a trusted colleague.
Making strategy work is harder than making strategy. Be a student of process improvement and continue to plan, act, and adapt.
Cash, the lifeblood of any business, gives you better buying power, more flexibility, a way to keep up with debt, and a way to grow.
Why We Do What We Do
Media outlets abound, as does clickbait-oriented information geared to drive online ad revenue. The sheer amount of clutter clogging up the web is a disincentive for people to receive personally relevant content. GB believes that a business owner’s most precious asset (next to the business) is time, and therefore a weekly update on the fundamentals is needed.