The Process
We really try to make things easy for you and will provide you with an initial indication of interest within days not weeks or months…
1. Initial discovery
During initial discovery you send us information on the business along with any documents you have, business plans, proposals, and anything else relevant regarding your needs. We will evaluate the business and industry to determine if it’s a fit for us. This stage is mostly conversational with you allowing us to gain an understanding of what your ask is along with the business outlook, operations, and overall future plans. If it’s not a fit for us we’ll let you know immediately – usually with 48 hours of this initial conversation and proposal review.
If we have an interest in exploring further we want to sketch out some financial terms upfront to avoid any misunderstnadings later.
2. Term Sheet
Assuming the discovery goes well we would like to get you a term sheet in writing outlining our proposal and deliverables. The term sheet is not a binding contract or agreement between us – it simply details the investment, equity percentage, covenants, any changes to operating or shareholder agreements, and timeframes.
Once you accept the term sheet we move on to due diligence.
3. Due Dilligence
In this phase we are evaluating everything in the business, looking under the hook, trying to find skeletons, and getting a deep understanding of the financials. This stage can take anywhere from a few weeks to a few months depending on the complexity and timeliness of document requests.
It’s critical we know what we’re investing in and that we can gain an understanding of key drivers of the business.
4. Legal documents
Once we finish up with due diligence it’s all about working to get legal documents drafted and finalized. We will work with a local law firm experienced in the specific business or industry we are contemplating. This stage generally takes a few weeks if both sides are working diligently and responding in a timely basis.
5. Closing
Time to celebrate! We close on our transaction and look forward to the future as your equity partner. All in from start to finish you can expect a few months. We don’t rush and want to do this the right way, and make this a successful long term investment alongside you.