Novastone Capital Advisors (NCA), founded in 2019 by Christian Malek, has gained significant recognition for being a leader in the Search Fund sector and a formidable force in small- to medium-sized enterprise (SME) management and succession planning. Over the past five years, NCA has made 16 successful acquisitions through its Entrepreneurship Through Acquisition (ETA) program, quickly expanding to become the largest program of its kind globally. By bridging the gap between seasoned professionals and the untapped potential of well-established businesses, NCA is writing a new chapter in the story of business continuity and growth.
The Mission Of Entrepreneurship Through Acquisition (ETA)
"Not only do we assist business transitions at Novastone, but we also revive the entrepreneurial spirit within SMEs," states Christian Malek, founder and CEO. The ETA program was created with the specific goal of assisting both family-owned and private high-growth firms in the smooth transfer of ownership to new, qualified executives, ensuring that these businesses continue their legacy and embrace future growth under skilled new leadership.
Recognizing the unique challenges that both family-owned and private SMEs face, particularly when there is no clear succession plan or heir, NCA's program proactively addresses these issues. The firm is committed to ensuring these companies not only preserve their legacy but also embrace opportunities for future expansion and transformation under astute management.
The Rigorous ETA Process
Precision and excellence are the hallmarks of NCA's ETA program selection process. Only the top 1% of applicants are approved after a rigorous three-month evaluation process with over ten touchpoints. These chosen few are then given comprehensive training, resources, and assistance, which improves their chances of finding, purchasing, and transferring a firm successfully. Targeting only the smartest and most outstanding individuals in their mid-career, NCA provides them with the chance to take a sizable ownership position in a company and run it, until a new controlling shareholder is ready. This system greatly raises the odds of success during the search and value development phases in addition to drawing in more investors and SMEs.
Spotlight On Success: Will Hunnam's Journey With NCA
Will Hunnam is one of the many CEOs that NCA has partnered with. He started his career in the UK with a 15-year stint at Shell, where he also graduated from Northumbria University with a BEng in Marine and Mechanical Engineering. He moved from corporate to startup roles and headed different companies for ten years. He co-founded a corporate advice firm in 2013 which then grew into a fintech investment platform in 2016, raising money from angel investors, venture capitalists, and strategic partners.
At that point in his career, Will had taken his solid business foundation and used it to gain experience in working on transactions involving structured term loan, equity, and trade finance. He started looking into alternative avenues through which he may advance his entrepreneurial journey, where he learned about ETA in early 2021. "I saw that partnering with NCA could make it possible for me to acquire a business at a much bigger scale and receive support throughout the ETA journey," Will said. "That was attractive, especially the support in those aspects of the ETA process where I had limited experience, so I decided to apply for the program."
In April 2023, he acquired Forza Doors Ltd., a leading UK supplier of fire-rate and non-fire-rated timber doors, panels, and doorframes used in commercial interior construction. "I was primarily looking at engineering and engineering services but was also exploring manufacturing companies with significant owned IP, which is where Forza fit in very nicely. Forza Doors Ltd. is a fantastic business," said Will, "and from the first moment that I started to learn about the company, it immediately felt like a good fit."
A number of testimonies, including those of Nick Ackers, Val Pilch, and George Berczely, also talk about the effectiveness of NCA's ETA program. Like Will, each has evolved from a promising professional to an inspiring CEO leading their own businesses toward expansion and innovation.
Addressing The Challenges Of Unsuccessful Transitions
While the majority of NCA's transitions are successful, the program is also designed to adeptly handle cases where challenges arise. Malek acknowledges this, noting, "While our success rate is high, we're always prepared to step in and realign strategies for the few cases that require it." In instances where a transition does not go as planned, NCA collaborates closely with the company's board of directors to actively seek a new CEO, ensuring the business remains on a stable and prosperous path. This strategy is a part of NCA's dedication to the businesses' and the professionals' long-term success.
Charting The Future
The search fund industry has seen incredible advancements in NCA's ETA program since its launch. With 50 program participants, over 40 employees, and 16 successful acquisitions under its belt, NCA has grown quickly to become the largest program of its kind worldwide, holding an estimated 20% market share.
Reflecting on the program's success, Malek proudly says, "Our rapid expansion and significant market share are testaments to the effectiveness and uniqueness of our approach.'' With a substantial presence in both North America and Europe, this growth positions NCA as a distinct player in areas that have historically been underserved by similar initiatives. These accomplishments highlight NCA's unmatched ability to change the SME management and succession landscape.
"We are not relying on our past successes," adds Daniel Gaertner, Managing Partner at NCA, who's overlooking most of the companies' operations. "Our team is continuously exploring new frontiers and strategies to enhance our ways. We are committed to expanding our reach, deepening our impact, and driving sustainable growth across the industry." Novastone promises to remain steadfast in its mission to transform the sector and preserve legacies in the modern world.
