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.
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.
Our process is easy and turn-key for sellers
After a thorough Underwriting, we invest in a full Purchase Agreement (PA), so that we can be transparent and upfront. We use robust M&A databases of completed transactions to arrive at deal terms. With many buyers, the PA is done later, and contains many surprises not discussed early on, which sour relationships, and which are difficult to negotiate, one of the reasons that most deals in the are not completed in the broader industry in the U.S.
We present the PA on a call with seller and broker. Questions and dialog are important in communication. We explain, answer questions, and start a dialog.
Seller feels it is a great fit, and would like to proceed, and signs a 2 page no-shop agreement as a Kick-Off to discussions.
Kick-Off video call with Founders Trust Team, Sellers, Intermediaries, and Deal Team. Buyer and Seller negotiate PA in a manner which is human, practical, and collaborative, as a way of getting to know each other.
Signing of PA
On-site visits, team building.
Collaboration. Culture building.
Seller sends DD Materials
Seller sends digital folder with Due Diligence (DD) materials to seller, and DD period begins.
Legal teams collaboratively work on the various administrative closing items.
Due Diligence Period
FT engages third parties for a thorough, timely, and professionally run DD period.
Close the Transaction
Closing dinner. Team building. Crystal deal awards for everyone’s desks.
Intelligent, succinct, well-run transition period with world-class team.
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.