Having been operators ourselves, we know how difficult it is to have interruptions to the business - even minor disruptions can put undo stress on you and your business. Throughout the change in ownership process, we strive for:
Discretion. We focus on the strictest standards of confidentiality. It matters to you and it matters to us.
Efficiency. A smooth diligence process is about honest and open communication. We will move things along as quickly as appropriate to ensure a successful deal, but also work with you to get any additional information needed to ensure everyone is aligned.
Candor. We try to clearly communicate our expectations and provide updates on our progress throughout the process. One example is this outline below covering the major milestones in most transitions. Our intent is to establish the foundation for a strong relationship moving forward after a transaction closes.
OUR PROCESS
Step 6 -
Transition
After closing the deal, our teams work together to ensure a smooth transition for employees, customers, suppliers, management and owners of the company. There are a number of areas where we can add value. While specific to each situation, areas where we would typically spend time in the transition include:
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Soliciting feedback from customers, employees, and suppliers
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Establishing or improving operational and financial reporting
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Environmental Health and Safety Practices
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Developing new sales or distribution channels
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Establishing or upgrading training plans for employees
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Improving operational, sales, marketing, and office processes
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Updates to the company’s online presence
Step 1 -
Establish Fit
Determine if there is a high-level fit between our investment criteria and owner’s objectives. Our goal is to build a relationship and make sure our objectives align.
Step 2 -
Business & Industry Review
The second part of our process is to evaluate the industry, business operations, management team, and our ability to make an impact.
Step 3 -
Letter of Intent
If we determine that there is a good fit, we will submit a Letter of Intent (LOI). This is a major milestone where everyone agrees the most important terms for completing a transaction.
Step 4 -
Due Diligence
After signing an LOI, we start a more detailed review of the business and develop an ownership transition plan. We also work together to determine the right way to engage with management, employees, customers and suppliers.
Step 5 -
Closing the Deal
In the last stage before closing, we finalize any legal, tax or organizational documents and prepare the team for the change of ownership.