1. Pre-Defined Process
Each step of process is clearly defined from the beginning.
2. Pre-Defined General Terms
These documents are available after signing the Confidentiality Agreement. These outline the general terms we use.
3. Upfront Deal-Specific Terms
Clear view, at the outset, of each of the specific terms for the transaction.
FT’s Acquisition Process has 6 steps:
1. Desktop Due Diligence
FT completes in-house, Initial/ Desktop due diligence of company, industry, competitors, cyclicality, risk factors, and any factors related to geographic location.
Understanding of Buyer’s and Seller’s objectives, and if there is a match on transaction structure and general pricing methodology.
2. Letter of Intent
Seller engages specialized M&A legal counsel and prepares to receive LOI.
15 minute intro call: Buyer and Seller and brokers each introduce their counsels and accountants to each other. Brief introductions all around.
LOI submitted: Agree on price and other deal terms, including timing & process.
3. Negotiate Purchase Agreement
Seller’s and Buyer’s legal counsels negotiate details of Purchase Agreement back and forth. (Buyer & Seller coordinate through counsels on details.)
In parallel, this gives time to the seller, to gather Due Diligence materials (the “Gathering Process”) so that these are complete before third party DD teams are engaged for this transaction, for the Third-Party Reports.
Click here to view or sign our Simple Confidentiality for Intermediaries
Sign the confidentiality agreement to the left, to receive a sample copy of our Form of Letter of Intent (LOI)
Sign the confidentiality agreement to the left, to receive a sample copy of our Form of Purchase Agreement (PA)
Click here to view or sign our Simple Confidentiality for Companies
4. Execute Purchase Agreement
Agree on Seller’s Representations and Warranties. Coordination between legal teams on remaining technical items.
If Seller is staying on as CEO or another position, also agree on employment agreement.
5. Due Diligence, Quality of Earnings
Upon execution of Purchase Agreement, FT engages third party Due Diligence teams, for the Third-Party Reports:
Legal Due Diligence, Financial Due Diligence, Quality of Earnings Report, Proof of EBITDA, any Licensing or Regulatory Factors, Real Estate Due Diligence, Market and Competition Due Diligence. On-site visit, meet and greet.
Coordination between seller & post-closing or transition team.
6. Closing
Completion of Transaction. Wiring of funds from Buyer to Seller.
Post-Closing: Founders Trust team works with seller in our organized transition process, to either his new role at the Company, or, if he is retiring, the transition to the new management.
Exits are the most important of every business owner’s successes
You see it in the news every day: the majority of acquisitions fall out of contract. We believe it should be different.
90% to 95% of private companies under $30 million never sell. We exist to be a different buyer.
Founders Trust is a reliable transaction partner, and always closes, no matter what the stability of the economic environment.
Buyer Selection Matters™
Founders Trust is A Different Buyer.
Welcome the input of Founder
Founders who have achieved a successful exit with Founders Trust have the option to work in a role they love at the company if that is right for their goals; or, to advise on the boards of similar companies and be given equity in those companies. We value their wisdom.
No IRR targets
FT is not a private equity fund, it does not have the defined fund life that private equity has. FT does not have to take dramatic measures to work to meet IRR targets, including layoffs or shutting down and conglomerating the company.
Grow and Support the Company
FT focuses on operational stability and organic growth.
FT gives equity to the management of the company, and to all of the employees of the company.
We work with investment banks and intermediaries
For business owners who are already ready to sell – and to either retire, or stay on doing only the part that they love, not the parts they hate.
Contact us to receive our detailed Acquisition Criteria and more information.
Frictionless Acquisition System™
What it means: The entire Acquisition Process is seamless, transparent, and pre-defined. Everyone knows what to expect, and when.
Since 2008, for private companies, Founders Trust has completed each transaction which it has put under Purchase Agreement.
FT is able to complete transactions in any economic environment, even when the news is filled with other transactions falling apart.