The Acquisition Process

When a business owner approaches us and we see a firm with real potential, we will start with an initial discussion to get an overview on the business and the marketplace, as well as the objectives and needs of the owner.

If the business meets our investment criteria, we will agree a Confidentiality Agreement to develop the finer details of the partnership. This will include an in-depth review of:

  • Business owner’s objectives, whether outright sale, partial sale, management buyout, etc.…
  • Accounts and financial statements/outlook
  • Other relevant information, such as annual capital expenditure

Once this information has been evaluated, we may then schedule a further meeting to develop the basis of an agreement and supply a term sheet for review.

Closing the deal

It’s at this stage when we may seek clarification on certain issues and carry out a site visit. Further discussions will take place regarding company valuation, the envisaged structure of the deal and any other plans for the future of the business. When agreed, this will be drawn up in a formal Letter of Intent.

Once this is complete, we will carry out Due Diligence: an extensive 30 day review of the business, including a detailed analysis of accounting history, operating practices, customer/supplier/management references and market reviews.

The final step in the process is the legal documentation. Upon completion, funds are released and the deal is complete.

The new business venture has been formed, is operational, and looking forward to a successful future.