Valuation Considerations

Our principals fully back every investment, eliminating the need for external financing. If external financing is ever required, we will clearly state it in our term sheet. This approach ensures deal certainty and fairness for all parties involved.

We prefer straightforward cash offers. While we are open to various transaction structures, a cash offer is typically the easiest to execute and most transparent. In our experience, incentive-based structures like earnouts can lead to complications and friction between parties.

We strive to accommodate the unique needs and requirements of each vendor. Please communicate your priorities so we can tailor the deal structure accordingly. For example:

• •If there's an existing general manager interested in a management buyout but needs financing, we are open to partnering with your manager.
• •If there's a need to support employees or business partners (perhaps due to a verbal promise).
• •If the vendor wishes to continue working (or not).
• •If the vendor is willing to retain a minority stake and participate in future upside.
• •If there's no immediate need for cash (e.g., staged buyout or vendor financing in exchange for a higher price or interest income).
• •And other specific considerations.