We Acquire & Provide Equity Fnance For Profitable Businesses
We Acquire & Provide Equity Financing For Profitable Businesses.
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.
ACQUISITION STRUCTURE:
- Full asking price
- Our LOI is NON binding
- ACI will on a best efforts basis seek bank financing
- Once financing is secured the agreed upon equity anount (10% - 100%) is transferred to ACI.
- ACI is soley responsible for bank loan debt repayment
- Seller will receive 70% of the bank financing and receive a 30% seller note due in 5 years
- ACI will pay the business broker fee based on the full sale price (If applicable)
Benefits:
* 100% of asking price
* Equity retention and/or 5 year seller note
* Earnout (Optional)
* No debt repayment obligation
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
-FINANCING APPROVAL
-SELLER CONFERENCE CALL
-NON BINDING PSA
-SITE VISIT
-FINAL BOARD VOTE
-FINAL BINDING PSA
-CLOSE