We seek to build a diversified, but complementary conglomerate of businesses across the Transportation & Logistics and Warehousing and Distribution industry sectors. We typically pursue buyout transactions in the lower middle market in North America with revenue ranging from ranging from $10 million to $50 million. Our process is as follows:
Our first call will be strictly introductory. We will ask for some basic information and get to learn more about you and your company, as well as you about ours. Once we determine that your business fits our investment criteria, we forward you an NDA and request additional financial information on your business. We are very selective about the business owners we work with as we seek to build relationships before transactions. We review your goals and what is important to you post-sale in order to align expectations early and better facilitate a smooth transition.
Upon NDA execution, we request additional information such as the business's past 3 to 5 years financials including P&L and Balance Sheet movements, a summary of your top customers (actual names kept anonymous), as well as your USP (Unique Selling Proposition) that differentiates your business from others in your industry.
After initial review of this basic information, we will immediately inform you of whether or not your business may be a good fit for us or our network and will then provide you with an IOI (Indication of Interest) and occasionally a Term Sheet after scheduling a confidential on-site visit. A "Term Sheet" or "Head of Terms" is a nonbinding, contingent agreement setting forth the basic terms and conditions under which an investment or buyout will be made.
Following the visit, we may request additional information and occasionally another site visit. During this process, certain terms may be adjusted or changed as we navigate to a more formal agreement, the LOI. The LOI breaks down many aspects as to how we are offering to structure the deal, whether or not any financing will be involved and to what extent, as well as price offered, time frame to close and due diligence material requests. This document implies a very serious intent to purchase or invest in your business and usually leads to a closed transaction.
This period typically ranges anywhere from 30 to 45 days. We will go through an in-depth analysis of your business's operational procedures and practices, financial history, customer and supplier lists, as well as inventory, and furniture, fixtures & equipment verification. We conduct this due diligence, along with third party associates such as accountants and legal advisors. Assuming due diligence is satisfactory, the final step in the acquisition process will be funding and execution of final legal documentation. Depending on the deal structure and whether or not we are purchasing using debt or equity, or a mix of both, this process could take an additional 2 to 4 weeks. Upon completion, funds will be wired to you and we will begin a great working relationship together.