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We Acquire Profitable Businesses.
Acquisitions:
We are an agnostic financial private equity firm seeking the acquisition or equity financing of profitable, established businesses in the USA. As an agnostic acquirer and financier we will look at almost any industry.
ARMSTEAD CAPITAL ACQUISITION STRUCTURE:
1. We shall offer full asking price supported by EBITA
2. Our LOI is NON-binding
3. Full terms of any acquisition will be set forth in the Conditional Stock Purchase Agreement
4. We are seeking MOTIVATED SELLERS ONLY. We are seeking business owners who need to vacate within the next 30 days or have recently closed the business. We initially require 100% seller financing. Only business owners who need to sell immediately will entertain 100% seller financing.
5. We will receive bank financing within 90 days. Seller will receive 70% of the bank financing and receive a promissory note from ACI for 30% for up to a 5 year term. If we do not acquire bank financing within 90 days full ownership reverts back to the seller. During the financing period if the seller stays to manage the business the seller will retain 100% of the profit. If the seller vacates during the financing period they will receive 50% of the profit for the duration of the financing period.
ACI will pay the business broker fee based on the full sale price (If applicable).
INITIAL DUE DILIGENCE QUESTIONS:
- PRICE? (NO BIDDING OR STALKING HORSES. NO PRICE: NOT INTERESTED)
- GROSS?
- EBITDA?
- Owners staying or going? We like if owner stays as we are absentee owners but owners staying is not necessary.
- Why selling?
- Are they absentee owners?
- Can any of the employees run the business? We will give the key employees 5%-10% equity and the rest of the employees share in an equity pool of 5%-10%.
- How many employees FT/PT, contractors FT/PT?
- Current Debt? Liabilities?
- Cash on hand?
- Real Estate? If yes - We prefer lease to own for 5 years. If yes - Value? Mortgage Balance? Assumable mortgage?
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
-PSA
-CLOSE
-BANK FINANCING