Our Investment Process

After establishing initial contact, our first priority is to candidly explore the feasibility of a potential purchase of your business. We understand that your time is very valuable so this step is designed to ensure that we do not take more of it than is needed. During our initial conversations, we will have frank, transparent discussions about our respective motivations to determine if we have sufficient alignment to move forward.

After our initial discussions, if there is a good fit, we will happily execute a confidentiality agreement and request some key financial information from you. Based on that information, we will make you an indicative offer within 1-3 days. This will be  a very short straight-to-the-point document with key purchase terms, almost all of which we would have already discussed in Stage 1 – so no major surprises.

If the indicative terms are acceptable to you, we will proceed to formalize an LOI which is simply a more detailed version of the IOI in Stage 2. The goal is to have the LOI be as close as possible to what the final terms of the business purchase will look like. We do not want to spring any surprises on you later in the process, so this means that we will have to engage with our lenders and investors for their input. As we engage with them, we may ask for a bit more information from you. Every information you share with us will be protected with strict confidentiality, as outlined in the already signed confidentiality agreement. This LOI process should take about 2-3 weeks.

Once you receive and sign the LOI, our confirmatory due diligence process will begin. The goal of the due diligence process is to confirm all of the information you have provided and to fully understand all the fine details and granularity of the business. This is a critical part of the process and often involves third-party experts like accountants, lawyers, etc. The confirmatory due diligence stage is also when we begin drafting all of the final transaction documents, including the business purchase and sale agreement, lender and investor documents, etc. The due diligence process typically lasts for about 90-120 days.

Once the confirmatory due diligence process is complete, we will sign all of the final transaction documents and complete a wire transfer to you, based on our agreement. Once that is complete, our founder will become CEO of the purchased business and a transition period will begin. The actual closing usually happens on one day, and the transition period will last for a mutually-agreed-upon period.