Private Equity | FGA Partners : Private Equity, Mergers & Acquisitions

Whether you’re a publicly traded company or a privately held company FGA is always open to speaking with decision makers and exploring the potential possibilities. We often get contacted by direct business owners who may be looking for an exit from their company, looking for a partner to help expand their business or are in distress looking for a path to save, restructure and rebuild their company, either way we always look forward to speaking with owners of viable private companies. Some Industries of interest are manufacturing, technology, rail and green technology manufacturing.

THE PROCESS

Following the introduction and confidential phone call, if there is an interest on the part of FGA to explore the opportunity then a confidentiality agreement will be mutually executed so that we can move forward to the due diligence to determine the viability and if it meets our requirements.

Be prepared as some of the information we will need includes the following:

Private Companies:

What is the plan of action? basically what are you as a business owner looking to do
Are you looking to sell the business outright? if so then why?
Are you looking to recapitalize the company and need a partner? etc, just give us a summary of what you are looking to do.

Public Companies:

Are you looking to make an acquisition? if so please give specific details including your stock symbol, exchange traded on, if the acquisition is of a private or public company etc
Are you looking for a management buyout? if so please give a description of the management team seeking to take the company private
Are you looking for recapitalization for growth of a viable company? if so please give details

Other things that we will need will be the financials including the balance sheet, profit and loss statement, management or owners salaries etc.

Depending on the business, industry and whether its publicly held or a privately held company, additional information will be required that we will request on a case by case basis.

Following the review of the information and determination of whether it will fit our criteria or not, a few phone conversations getting to know the owners or management a little better, then we will either confirm our interest in working with your company via the issuance of a term sheet by FGA and arrange for a tour of the site and meetings with the owners or C level team.

Once we have determined that the company, team as well as the growth potential fits the bill then the process becomes more formal and involved, we will exchange phone calls, additional on site visits will take place, additional face to face meetings with the decision makers will take place and it becomes a getting to really know our potential partners or acquisitions as much as we can. Its the due diligence process which will lead us to mapping out a fair company valuation, transaction structure and more times than not the term sheet will be revised a few times before we move to the formal Letter of Intent phase.

The LOI is where everything is outlined, final terms etc

Next step is the deep due diligence process, this can take anywhere from 30-45 days, this is where the business is reviewed, the financials and accounting, customer and supplier information, operating practices, management team and industry study are reviewed by FGA’s in-house and external professionals. Even though FGA has the committed capital for an acquisition or partnership in most cases we will use some type of debt or equity financing to supplement the transaction. This varies from transaction to transaction.

FGA has relationships with a number of lenders who would be interested in aligning with FGA to finalize an acquisition.

Once we pass this final fig leaf then agreements are distributed, executed and then we begin the process of a mutually profitable and growth oriented venture.

Confidentiality Professionalism Communication