Transitions
We seek primarily ( not exclusively) seek to function through the buy side fulfilment of the transaction of the engagement.
Middle market and Lower middle market
Whether the plan is to exit or partner with seasoned capital to grow your story needs to be heard. From the founder, family owned, management owned or corporate divestiture let’s find that point of intersection.
Enterprise values up to $50 million
Prefer Operating cash flow greater than $2 million
Proven management teams
Fragmented industries
Reasonably identifiable growth potential
From our viewpoint
As an acquisition and growth financing advisor we seek help increase the business market share or drive growth opportunities through the right relationships resulting in full transitions, participations even recapitalizations.
What comes to the table?
Strategic buyers, clear decisions, capability to match seller needs, patient capital
INDUSTRIES
IT Solutions
Cybersecurity and Network Engineering
Business Services
Food Manufacturing and Distribution
Healthcare & Medical
Industrials
Environmental
Distribution
What gets it started and what we need to understand?
The Acquiring firm needs to know a company’s financial health, operational efficiency, management team, and market position to invest, and must conduct extensive due diligence. Key documents necessary for this process include financial statements, the business plan, legal contracts, and organizational charts.
Key areas of inquiry
Financials: Buyers will analyze historical performance, cash flow, and profit margins, and review current financial statements like balance sheets and income statements. They also look at financial projections and the company’s capital requirements.
Operations: They assess the company’s operational capacity, supply chain stability, and scalability. This includes reviewing the current accounting system and any existing customer and supplier contracts to identify risks. Also evaluate the experience and capabilities of the management team, look at the organizational structure, and examine any HR-related legal or compliance issues.
Strategy and Market: They will review the company’s business plan to understand its strategy, market position, and competitive landscape. Industry reports and information on key customers are also vital.
Legal and Compliance: Due diligence involves reviewing all legal contracts and agreements to identify potential risks and ensure regulatory compliance.
Due Diligence Documents:
Historical financial statements (income statements, balance sheets, cash flow statements), Current financial statements and projections, Sales reports and details on accounts payable, Information on the current accounting system
- List of all equity interests and a capitalization table (cap table)
- All legal contracts and agreements (customer, supplier, partnership, etc.)
- Information on any previous VC funding
- Operational and Human Resources Documents:
- Information on supply chain and inventory
- Customer lists and details on key partnerships
- Organizational chart and details on roles and responsibilities
- Human resources and legal/compliance information
- Independent industry reports
Final investment documents
Once due diligence is complete, the final investment will require documents like a Share Purchase Agreement (SPA), which details the terms of the sale, and if needed Shareholders’ Agreement (SHA), which outlines the rights and responsibilities of the shareholders moving forward.