OUR APPROACH TO DEAL STRUCTURE
Small businesses encompass significant transactional risks for any buyer. This is the reason why typical Private Equity and corporate trade buyers will require the seller to enter into long-term employment contracts as well as a myriad of additional hard to accept requirements. BOSA GLOBAL CAPITAL chooses to work collaboratively with business owners to try and find a way to get to a win-win solution that is best for all parties. We find a way to get to YES
DO DO WE
A suitable investment for us would meet many of the following criteria:
BOSA GLOBAL CAPITAL is willing to consider M&A investment opportunities across various industry categories and demographics in these geographical areas The United States, Canada, EU Countries, United Kingdom Australia and New Zealand.
Consistent revenues in the $2,000,000 - $20,000,000 range
A well established business with a long operating history (5 years minimum)
Consistently profitable with EBITDA of at least $250,000
A business owner who is seeking a succession plan, and that has made up their own mind and identified that now is the time to transact
Fragmented competition. Strong barriers to entry (through IP, strong distribution networks, customer contract length, etc.)
A business in a market with secular growth, independent of the economy. Little or no long-term debt in the business, and a strong customer pipeline
BOSA GLOBAL CAPITAL is flexible on financing terms and is dependent on the type of investment we are making. From an M&A perspective, the key for us is to make certain that management, new investor capital and current shareholder interests are all aligned. We would consider companies with at least $250,000 in EBITDA and revenues between $2,000,000 - $20,000,000, as a general guideline
BOSA GLOBAL CAPITAL is willing to invest the required time, effort and capital needed to acquire businesses
So long as the risks are mutually shared. This will ultimately come down to whether you are willing to make it happen. We primarily deal with businesses that have long and stable operating histories of profitability.
With this in mind, a typical offer from BOSA GLOBAL CAPITAL will consist of a cash payment at closing plus the balance paid out over time (a set period of years dependent on the strength of the cash flow) in a tax optimized manner to the seller.
We view this as a well-balanced deal structure for all parties - and which allows us more flexibility to reduce the overall acquisition requirements. This ultimately means a higher chance for you to sell your business at a fair valuation - and on terms which are far better suited to you.
BOSA GLOBAL CAPITAL IS ALSO FLEXIBLE WITH THE FOLLOWING:
The length of your post-sale employment contract
Structuring the deal in a tax efficient manner for you
Paying you a premium for your business in exchange for you taking a higher quantum of annual payments over time
Removing some, if not all, of the typical Private Equity and trade buyer requirements
Other nuances you bring to our attention which are important to you and your team in the overall transaction.
POST ACQUISITION STRATEGY
BOSA's post-acquisition strategy solutions are designed to support your management team and employees, define your company’s future growth plans, and deliver on your respective goals. This is done while maintaining the core values that have made your business so successful to date.
OUR POST ACQUISITION areas of focus are
Developing a company strategic vision that employees can believe in
Implementing sales & marketing best practices
Financial engineering to ensure that the cash flow in the business is maximized
Productivity enhancements via business process optimizations and technology
Ensuring that your most important assets, your team, transition well
HOW LONG DOES BOSA TAKE TO CLOSE A TRANSACTION?
Once we have agreed terms in place with a business and move into an exclusivity period, we can close a transaction in approximately 45-60 days. It is during this time that BOSA GLOBAL CAPITAL will raise funds on a ‘deal by deal’ basis from its network, conduct due diligence and then proceed to final documentation in order to close the transaction.
It is important to stress that we do not wish to disrupt a company's regular activities and as we seek to become partners with our target companies, we believe that partnerships should not be taken lightly. We prefer discussions to be thorough and not rushed.
Depending on the complexity of the opportunity, BOSA GLOBAL CAPITAL prides itself on being able to close a transaction quite quickly. Seeing that we are not a fund, we have the ability to make rapid decisions. That said, we often build relationships with entrepreneurs for many years and will close an investment when the time is right.
HOW DO I INTRODUCE AN INVESTMENT OPPORTUNITY?
Once an Non-Disclosure Agreement has been executed, we would require the following
Past 3 years of accountant prepared financials
Current Balance Sheet (within 30 days)
Current Profit & Loss Statement (within 30 days)
Information Memorandum on the business