How would it work?

the process from start to finish

  1. We have an informal chat, collect some high level data and see if it’s something we both want to explore.

  2. It's important for us to understand your situation and what's important to you. We also want to know:
    - the history of the business
    - how is it structured and how it operates
    - how do you market the business today

  3. We sign an NDA and request some basic financial information; usually the last three years of accounts from which we make a valuation assessment.

  4. We present our valuation, explain the calculations behind it, and try to find some common ground for a win-win situation going forward.

During our acquisition processes, we focus on the most important things and we try to be pragmatic and fast-paced - and disrupt the daily operations of the company as little as possible.

Strategy:
We want to maintain the positive attributes and tradition in the business, strengthen what is already working and protect the legacy, customers and the employees - that is why we believe it's good that the owner retain some equity.

However, we are perfectly fine with acquiring 100% of the shares too, if that is your preference.

We will focus on growing the business from a strategic sales and marketing perspective while trusting the existing staff to manage and operate the day-to-day business.

Funds:
We have access to long-term investors, however the structuring of a deal will depend on the fundamentals of the business. We usually use a mix of equity, debt and seller financing.

What we are looking for:
We are looking for profitable businesses with good fundamentals, with some barriers to entry, solid processes, good employees and customers.

It's imperative that there are systems for the operational part of the business, as that is, in essence, what we are acquiring.

If the business is relying too much on one person (or one customer) for example, then that COULD present a problem, unless there is a way to get around it.

It's not equally important that there are systems in place for the marketing side of the business as this is something that we will provide ourselves. In fact, this is one of the very first things we hone in on post acquisition.