The partner of an internet provider in Mato Grosso do Sul had a clear growth strategy: buy other providers and grow the customer base, with an eye on increasing the company's value over time. He had already made a few small acquisitions in installments. The catch was how he paid the down payment: with his own personal assets.
It worked. But it had a cost he hadn't yet put on paper.
The challenge
Every acquisition consumed part of the partner's personal assets, which were folded into the company to make the purchase possible. What he didn't consider was when, and whether, the company would give those assets back to him as a partner in the business. The company's growth was, in practice, being financed by the personal wealth of the person behind it.
He also didn't know other ways to access capital for growth. The model he knew had a natural limit: the size of his own assets.
How Vispe worked
The first step was a change in mindset. With Vispe, the client understood that the company itself has to generate the resources for its growth. That was the main trigger for the change.
From there, we tapped a Vispe partner fund that finances 30% of the down payment on acquisitions of other businesses, with rates and terms that don't squeeze the company's cash flow.
The biggest obstacle was fitting in an installment that wouldn't compromise the client's cash. The solution was technical: we presented a cash flow statement that proved the company could pay the installment without delays and without compromising the operation.
The results
With R$ 1 million raised, the company acquired two new businesses. Financially, the logic held: the opportunity was far more profitable than the cost of the debt.
- Revenue: from R$ 400 thousand to R$ 800 thousand a month.
- Base and margins: grew with synergies from the acquired businesses.
- Valuation: increased along with the growth after the acquisitions.
What changed
The partner understood how inorganic growth works and how much it can change a company's strategy in a short time. More than that, he broadened his view of debt: he understood that it's possible to borrow with financial health, using the money correctly and wisely, without putting his own assets on the line.