Transaction Process Overview

 

The Partners of Lead Capital have completed 38 platform investments in the lower middle market. We execute an efficient and proven process. We provide sellers and their advisors straightforward and responsive feedback from initial introduction to closing. A description of our process is presented below. A typical transaction is completed approximately 90 days from the signing of a letter of intent.

 

  • Lead Capital is provided summary information on the Company that gives an overview of its operations, industry and general financial information. This information comes from either an advisor (lawyer, accountant, business broker, investment banker, etc.) or directly from the seller.
  • Lead Capital and the Seller have an in-person meeting where the Seller provides a more detailed overview of the Company.
  • Lead Capital performs initial industry and business diligence and continues discussions with Seller regarding strategy, pricing, margins, competitive dynamics, and other items relevant to the Company's ability to sustain and grow its earnings.
  • Lead Capital submits an Indication of Interest that summarizes the purchase price and terms.
  • Lead Capital and Seller continue dialogue and execute a Letter of Intent that provides final, detailed terms to be documented in the Purchase Agreement.
  • Lead Capital performs final business diligence (including a third party accounting review) and selects its debt financing partners.
  • Legal documentation process begins.
  • Legal documentation is finalized and the transaction closes.