We get through diligence. We know how to close. We don’t waste time.
1. Understand the Situation
We prefer to have a phone conversation with the owner to make sure we understand the nuances of what they are seeking.
2. High-Level Financial Analysis
We would then verify financials at a high-level (tax return, etc.) to ensure all parties are in agreement as to the "Adjusted EBITDA".
3. Expression of Interest
We will then submit a non-binding Discussion Letter which will delineate ARC's proposed valuation, structure and other items critical to the transaction. Let's not waste time if we aren't even close.
4. ARC's Capital Commitment
At this point, we would ensure the Seller and his representatives are comfortable with ARC's ability to financially close the transaction. If we are seeking outside partners such as a bank or mezzanine lender, we will ensure we have our partners lined up to effectuate the transaction as presented.
5. Due Diligence
All diligence efforts are headed by ARC's President, Ernie Cutter, who has 27 years of experience operating small businesses. This is NOT the Exxon / Mobil acquisition. Not everything will be perfectly packaged. We get it. We know how to get through diligence quickly.
6. Closing / Post-Closing
Post-closing, we seek to make NO changes to existing organization.
We seek to "keep the same people doing the same things for the same customers".
One of our first acquisitions was Haz~Mat, which had 28 employees at the time we acquired it in 2005. Currently, we still employ 22 of the original 28 employees.