Finance and Deal Structures
The Way We Do It
We are specialists in acquiring sound, profitable Owner-Managed Businesses.
We have access to finance from a wide range of 2nd tier commercial funders and we also have a small network of High-Net-Worth investors for the right deals.
Our normal process is to make an initial payment normally paid within 3 days of legal completion and then a portion of the agreed sale price on a deferred basis, typically between 12-36 months.
The reasons why there is a deferred portion are:
Our panel of funders and investors will not allow us to pay all of the value up front because of the risks associated with private businesses.
A deferred portion keeps vendors honest. No offence, but when a vendor knows he must be honest about future value, his interests are aligned with us as a buyer.
We focus on ensuring as much of the cash you have built up in your business is returned to you at the point of completion. Any advisor who tells you to take any spare cash out prior to a sale is a fool and should be locked up! Ask us why.
We then look at the historic performance of the business as well as the prospects for a decent return on profit after tax over the next four to five years. If your business sounds like this then we should talk.