Frequently Asked Questions (FAQ) 

 

1. What industries do you prefer to invest in?

 

We are generally industry agnostic, meaning we are open to investing in a variety of sectors. However, we prefer industries that are less volatile and have higher barriers to entry.

 

2. Why do you prefer the seller to retain a minority stake?

 

We believe that aligning both parties through a minority stake helps unlock the growth potential of the business. This deal structure fosters collaboration and mutual interest in the success of the company.

 

3. What documents do you need from me?

 

Initially, we require an executive summary or an Offering Memorandum (OM). Additionally, we need at least the last 2-3 years of financial statements and/or tax returns to provide a Letter of Intent (LOI).

 

4. When can I expect to receive a response after my inquiry?

 

The response time depends on the completeness of the information provided. Typically, an OM or executive summary with basic financial information allows us to respond within 3-5 business days. Unfortunately, we may not be able to respond if the provided information is insufficient.

 

5. How does the financing part work in the process?

 

Leveraging financing is one of our key strengths and strategies, as it helps achieve risk-adjusted financial performance for both parties. Generally, debt financing covers about 75% to 90% of the deal, sourced from traditional banks, SBA loans, or alternative financing resources, depending on the business.

 

6. What value can you bring to the business?

 

Our strength lies in our ability to enhance current operations and strengthen market position by identifying growth opportunities. We bring industrial networking and expert resources to optimize your business potential.

 

7. If my business recently experienced some fluctuations, what would be your approach?

 

It depends on the specific circumstances. We thoroughly analyze the risks and potentials. Often, fluctuations are due to mismanagement, which can be turned around. However, the pricing may be adjusted to reflect the associated risks.

 

8. If my business doesn't have an extensive history but had a great year, will you consider a high multiple based on recent performance?

 

It depends. In most cases, such scenarios make it challenging to obtain traditional debt financing at a high multiple. We might suggest structuring the deal with seller financing and/or an earn-out option.

 

9. I built my business from scratch. How can I trust someone like you instead of a direct competitor who knows my sector well?

 

While selling to a competitor has its benefits, we offer strategic opportunities with our extensive industrial resources. Even though we are not a specific industrial group, we can unlock your business's potential and significantly increase the chances of selling to a strategic partner.

 

10. I don't have a broker. Should I still consider contacting you?

 

Absolutely. We welcome business owners to contact us directly without the need for a broker. We are here to facilitate and simplify the process for you.

 

 

By addressing these questions, we aim to provide clarity and confidence to potential sellers considering partnering with us. To better assess if there's good fit between us, please complete our questionnaire. If you have any additional questions, feel free to contact us directly.