Investment Process

Succession Capital Partners’ principals are experienced operators with a long track record of working with families.

Succession Capital is a long-term owner. Our principals own our businesses personally. We view ourselves as Owners not Investors. We do not buy and “flip” like most private equity firms. We buy, grow, invest and focus on the long-term development and growth of a business.

We seek to evaluate all transactions, as quickly as possible. We will let you know within 24 hours, if we are interested in pursuing a transaction. If so, we seek to close the transaction within 90 to 120 days.

We understand that every family-owned business has unique circumstances and benefits to its owners. Please advise us if there are special points of interests that would be uniquely beneficial to the current owners. It is our desire to be flexible enough to accommodate the key interests of the current owners.

The Succession process is as follows:

1. Quick Initial Review – After SCP has received all information from you or the intermediary and company, we will decide to move forward, or not, within 24 hours. All information given to Succession will be held in the strictest of confidence.

2. Family Understanding – We prefer to have a telephonic meeting with the management / current owner to discuss the business and to understand the details of the transaction they are seeking.

3. “Same Page” Letter – We will then submit a non-binding Discussion Letter which will delineate Succession’s proposed valuation, structure and other items critical to the transaction. The Discussion Letter will seek to memorialize and encapsulate the various points of interests for all parties involved.

4. Materials Review – Should all parties agree to the items contained within the Discussion Letter, we would propose one week of thorough off-site due diligence during which time we would: (a) prepare for on-site management meetings; (b) conduct thorough industry due diligence; and (c) work with seller to “proof the cash flow”.

5. Smooth Transition – Upon “proofing the cash flow”, we would then move to meet with management and conduct on-site due diligence for one or two days. During this time, we would want to meet with the key members of management and begin to jointly develop a transition plan.

6. Formal LOI – After our on-site due diligence (which will occur within 14 to 30 days of first receiving all information), we would then memorialize the transaction in a formal, binding, letter of intent, or “LOI.”

7. Closing – After the LOI is signed, we would then begin to more towards documentation and selection of financial partners (senior and mezzanine lenders, if required). From the date the LOI is signed, we would expect to close the transaction within 90 to 120 days.

Do you have questions about our investment process? Contact us today.

 


Serving The Mid-Atlantic and Southeastern United States

Testimonials

“I carefully selected an investment partner to not only continue the top line growth of JES, but a partner that had the operational expertise to further improve our efficiency and enhance our delivery for our customers. Succession Capital Partners' hands-on commitment and proven track record of working with families, while successfully growing businesses, made them the best firm to entrust with JES’ continued evolution.”

- Jesse Waltz, president and owner of JES Foundation Repair

When considering an exit strategy from my business, I had two towering concerns, my employees and my former customers. Matt made it clear from the beginning that he would take care of both of them by building on my efforts of 32 years and infusing the much needed capital to unleash the full potential of my unique brand and growing it to a level that I never thought possible. I could not be happier with my decision to work with Matt and his team to help move me to the next chapter in my life.

- Allen Gantt, former president of Mount Valley Foundation Services Inc.

"Shipyard Staffing needed to address several internal succession issues, as well as our marine staffing business needed to expand. SCP's philosophy of buying, holding onto and growing companies is truly unique in today's market and exactly what we were hoping to find in a buyer."

- Russell Landry, former owner of Shipyard Staffing

"Succession Capital Partners' understanding of the emotional challenges of selling a family-owned business combined with their depth of industry knowledge and dedication to the growth and professional development of our employees made them the ideal investors for our company."

- Becky Fenska, former owner of PetroChem

"Matt/JES has a vision I embrace - the freedom to grow and to choose our own destiny. With the resources JES will invest in Tar Heel, we now are free to take our mission and purpose throughout the state of North Carolina and beyond,"

- Pete Burgess, CEO of Tar Heel Basement Systems