AQUISITION STRUCTURE:
Offer: Full asking price.
Must have real estate.
Our LOI is NON BINDING so the seller may entertain other offers.
In order to offset our risk sellers must retain 30% equity for one year. Sellers co-sign for bank financing and receive the proceeds of the acquisition loan. Sellers must sign a 10 year non compete agreement. 3 year earnout. We will purchase an additional 10% of the company per year for 3 years: 30% equity retention year one, 20% year two, 10% final year. Seller does not have to operate the business if employees are capable of running the business or we will hire a GM from outside the company. All employees and particularly key employees will receive equity. If the owner stays to operate the business they will receive a generous salary in addition to their equity share of profit. All employees will receive working capital bonuses including the seller.
Total seller compensation:
- 70% of full asking price
- Profit split: 30%, 20%, 10%
- Annual Earnout Buyout
- 30% of Working Capital Bonus
- Generous salary (If applicale)
Please confirm the above with the seller in order to proceed.
INITIAL DUE DILIGENCE QUESTIONS:
PROCEDURE:
-NDA
-CIM
-PRELIMINARY LOI NON BINDING
-DUE DILIGENCE DOCS:
LAST 3 YEARS TAX RETURNS
LAST 3 YEARS FINANCIALS
YTD
LAST 12 MONTHS BANK STATEMENTS
CURRENT SERVICE CONTRACTS
A/R REPORT
-INITIAL BOARD VOTE
-REVISED LOI NON BINDING
-FINANCING APPROVAL
-SELLER CONFERENCE CALL
-NON BINDING PSA
-SITE VISIT
-FINAL BOARD VOTE
-FINAL BINDING PSA
-CLOSE
401 1st Avenue, New York, New York 10010, United States
TEL 718.328.8403 EMAIL info@ArmsteadCapital.com 401 1st Avenue New York, NY 10010
Sign up to hear about what's new.
Copyright © 2024 ArmsteadCapital - All Rights Reserved.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.