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.