Recently, there has been a steady rise in female participation in acquiring search funds. Novastone Capital Advisors (NCA), a mentorship and capital firm, has become pivotal in this evolution.
The Women’s Search Network (WSN) witnessed an increase in the number of female searchers from 11% in 2022 to 17% in 2023, and the numbers have continued to grow throughout 2024, marking a significant change in the industry.
Women at NCA have led several acquisitions across diverse industries, demonstrating the power and utility of an inclusive team. Traditionally, it has often been difficult for women to access mentorship and capital, making acquisitions more challenging. Geographic inflexibility can sometimes limit women’s ability to participate in search funds, leaving women-led companies underfunded and female searchers without partnerships.
Although numerous barriers still prevent women from participating in search funds, NCA is making strides toward increasing their involvement. In 2024, NCA closed 10 deals, 30% of which were female-led. These whopping numbers demonstrate NCA’s commitment to inclusivity and raising opportunities for women, who are often overlooked in the field.
NCA’s 2024 Milestones: Enhancing Women’s Role in Search Funds
NCA looks at talent beyond gender and aims to include highly skilled professionals who have the expertise to support upcoming entrepreneurial talent. With 30% of NCA’s 2024 deals led by women, the company is proud of its statistics, which exceed norms across the industry.
Highlighting NCA’s Female-Led Deals
The three female-led acquisitions made in partnership with NCA are highlighted below. Their tremendous achievements have benefited their companies’ long-term growth and success.
Nicoletta Nutrito Acquires Mecavit S.r.l (Italy): Mecavit has been a respected leader in the fastener manufacturing sector since the 1980s. However, the company faced challenges during its succession, which is where Ms. Nutrito came in to help. With the support of NCA, she was the ideal choice for Mecavit’s next CEO.
Ms. Nutrito chose to pursue an acquisition because she believed her expertise and value would be unable to thrive in a larger corporate company: “NCA’s program felt like a great opportunity to make a tangible impact by doing my part to support Italy’s economic recovery while also advancing my career.”
This acquisition empowered her to rise to a more prominent role and utilize her industry experience. “While I have M&A experience, that’s never been the focus of my career. My core experience is on the line, the factory floor, and in front of customers, so support from NCA’s M&A team—who were very professional and responsive—was truly invaluable,” she added.
Dr. Lisa Piercey Acquires Keystone Pharmacy (USA): founded in 2012, the Keystone Pharmacy offered unmatched delivery options, personalized medications, and an outstanding patient education consultation program. The Mississippi-based pharmacy was set for success but had succession issues when the husband-wife founders struggled to keep up with the company.
The former owner said: “We are so grateful to have found an ideal fit. Given Dr. Piercey’s wide-ranging experience in healthcare, having her at the helm has created a high level of confidence that the company will continue with excellence.” The couple were happy to pass Keystone Pharmacy into caring, experienced hands.
Dr. Piercey commended her investors and NCA for their assistance during the ETA process: “Navigating the maze of licenses and contracts in over a dozen states took much longer than anyone expected. Fortunately, I had a stellar team of legal and regulatory experts who offered sound advice at every turn. NCA has been extraordinarily flexible and encouraging, and my investors stayed the course, providing insightful guidance and supportive friendship throughout the process.
NCA provided invaluable support for Dr. Piercey, whose background was a perfect match for the pharmacy. While the acquisition itself was a tremendous win, it was also the first female-led search by a medical doctor in the US.
NCA proved to be a critical component in setting a new US record for search funds.
Martine Legault Acquires Two Automotive Companies (Canada): Ms. Legault has two decades of automotive industry experience and has spent the last 15 years as the sole owner and operator of an automotive accessories wholesale distributor. With NCA’s support, she unified Les Contrôles Véhiculaires Protek Inc. and Mobile Power, creating a greener solution for vehicles with electrical technology that allows for an alternative to leaving vehicles idle within the work truck space.
“This company immediately appealed to me because it operates in a niche sub-sector of the industry, is well positioned to capitalize on growth opportunities, and is bolstered by a great team of people,” she explains. Ms. Legault’s expertise was well-suited for both companies and inspired a novel solution within her industry.
“Working with NCA is a partnership, and I felt supported throughout the process, from marketing and investor relations to M&A and legal, which are all the major key points you need to successfully close your acquisition.”
Even the CEO of NCA, Christian Malek commented on Ms. Legault’s tremendous abilities: “Martine [Legault] is a brilliant operator and the third female entrepreneur in our program to successfully complete her search and acquisition. We know she will continue making a meaningful impact in her industry, and we look forward to continuing to support her as she steps into her new role.”
NCA’s Innovative ETA Program
The NCA has begun offering an exclusive ETA Program which all the entrepreneurs mentioned above participated in. This program provides key services like an M&A (Merger and Acquisitions) team, legal and regulatory guidance, marketing support, and personal mentorship. These helpful services allow female searchers to acquire a business.
There are currently five female searchers within the program looking for a suitable company to acquire. With the help of NCA and its valuable resources, these women can find solid opportunities that may have previously seemed impossible.
The program is part of a larger effort to promote gender equity in acquisitions. Since women find success in this realm more challenging, NCA’s mission is to significantly impact the entire field and bridge the gap.
The Potential for Broader Societal and Economic Impacts
Whether in manufacturing, healthcare, automotive, or broader sectors, female entrepreneurs are tackling succession issues in small and medium-sized enterprises. Typically started by inexperienced entrepreneurs, small and medium enterprises (SMEs) often face a plateau or even a dropoff in growth once the company has had some success. It takes a genuinely savvy and knowledgeable businessperson to revitalize and set up an SME for long-term growth.
NCA’s ETA program ensures that credible women are able to participate in the initiative to help smaller businesses and inexperienced owners with tremendous potential.
NCA’s new female-led initiatives have the potential to tackle sustainability issues across sectors. For example, Martine Legault’s acquisition has already created a new, eco-friendly solution that can be applied to the automotive industry, proving that it only takes the idea of one great leader to incite larger, global change.
Green solutions require fresh perspectives and new ideas. As many industries shift towards more sustainable practices, NCA hopes their program inspires women entrepreneurs to contribute to ecologically-forward solutions that are otherwise hard to develop as small business owners with limited resources. The ETA program provides individuals with the tools, skills, network, and support necessary for creating impactful changes.
Beyond its economic impacts, the ETA program shifts the common narrative in entrepreneurship by giving women the opportunity to leverage search funds for ownership and professional growth, which in turn contributes to broader societal changes.
McKinsey & Company reports that by 2030, more than two-thirds of the USA’s wealth will be controlled by women. As women step into positions of greater power, industries will also adapt to the leadership changes.
NCA as a Thought Leader and Advocate in Search Funds
Novastone Capital Advisors has enormously impacted the search fund industry in recent years. Their continued support for women demonstrates a commitment to talent over tradition, with women like Nicoletta Nutrito, Dr. Lisa Piercey, and Martine Legault already making impactful business decisions in their respective fields.
Employing and capitalizing on diversity is a prime way to generate ideas that have shaped industries and companies for decades. Aspiring entrepreneurs and experienced business professionals should consider working with NCA to determine whether the search fund model is right for them.
Visit Novastone Capital Advisors’ website to learn more about its programs and ongoing success stories.
