The Endurance Eagle Acquisition Process

Selling your small business is a process that requires considerable attention, paperwork, outside support, and commitment of time and capital to be completed successfully. The largest risk in any business transaction is that the transaction will not continue to completion and both sides will incur costs, but create no value. Often called “broken deals,” in the small business acquisition market, it is our objective to make sure that our process has open and clear communication each step of the way to avoid the mistakes that lead to broken deal costs.

The Endurance Eagle process is built on integrity and direct one-on-one communication between the business owner, the owner’s broker, and Endurance Eagle’s managing director, Patrick Briggs. As Mr. Briggs will become the new manager and owner of your business, we believe in creating bespoke transactions that are a square deal for all parties with a goal of continuing the success for your legacy and business in the best possible structure. Our deal diligence process is three simple steps.

Introduction Process

• Introductory call
• Sign confidentiality agreement (email)
• Basic review of the business history (email and phone)

We start all business transactions with an introductory call to hear from you, the business owner, about the business you created and made successful. Tell us what you love about your business; the history of your business, your team, your customers, your products, whatever you believe is important.  We also want to hear about why now is the time for you to begin a process to sell your business and what you see in the future for your business after you complete the sale of your business process. Towards the end of the call, we can answer any questions you might have about the process of selling your business to Endurance Eagle, our capital sources, timing, and our business acquisition investment criteria.

If there is mutual agreement at the end of the call to move forward, the Endurance Eagle team will send over an electronic non-disclosure agreement (NDA) for e-signature. NDAs are legal documents between Endurance Eagle and you, the business owner, that protects the confidential material, knowledge, or information that both parties will be sharing. Upon execution of the NDA, we will request access to basic financial information from your business. This includes the three financial statements (balance sheet, income statement, and cash flow statement) and supporting documents for the last three to five years. After a 48 hour review of these financial statements, we will reach out to arrange next steps.

The last step in the Endurance Eagle introductory selling your business process is a phone call to review notes and questions from the shared materials. This is the time for discussion of the strategic changes you have made over the years that might impact revenue, cost of goods sold (COGS), operating expenses, capital investments, net income, and more. After this call, we will decide together if there is mutual agreement to move forward and schedule another discussion (over the phone or face-to-face) as part of the next phase, diligence.

Diligence Process

• Discuss transition objectives, tour business 
• Sign letter of intent (LOI) (email)
• Begin third-party diligence (in-person, email, phone)

The start of the diligence process is an in-person meeting (or meetings) after the business history review to discuss, at a high level, the goals of the transaction and tour the businesses assets.  This conversation touches on the business evaluation, comparable transactions for other businesses, timeline for transition, and the price at which you, the business owner, are willing to sell your business. As with the introductory process, there needs to be agreement collectively to move forward to the next step, the LOI.

A letter of intent (LOI) is a brief document outlining the basic structure of the transaction as discussed. This document has legal binding terms for exclusivity (usually for ninety days) so both parties have the time to prepare research and diligence on the proposed transaction. Signing this document does not mean that you are agreeing to sell your business to Endurance Eagle, but instead give everyone time to thoroughly explore the relationship and transaction without distraction. This document also acts as the starting point for the Endurance Eagle team to hire and pay our outside advisors, lawyers, and accountants to review the business.

Outside advisor diligence is required in the process to secure debt financing (typically in the form of a bank loan) and equity financing from Endurance Eagle’s limited partners (LPs). These advisors will review the business, contracts, bank accounts, and more. This part of the process requires the highest level of communication to address any questions and ensure we are moving forward towards the close and transition of your business.

Close & Transition Process

• Finalize and Close the Deal (in-person)
• Transfer of Funds
• Begin Management Transition

The closing of a business sale process starts as diligence ends and is the final step in transitioning your business ownership to Endurance Eagle. The terms agreed to in the LOI (and sometimes these are mutually modified after diligence) will form the basis for the asset purchase agreement, which dictates the sale of your business. This agreement will be written by the Endurance Eagle legal team and reviewed by your legal team. Concurrently, this is the time for the Endurance Eagle team to meet with key employees to begin discussing transition plans and ensure smooth continuity for all of your customers, suppliers, and employees. The completion of the agreement and other legal documents will precede the transfer of funds at the close of the transaction – you’ve now sold your business! Congratulations!

After the close of the transaction, Mr. Briggs will step in as management and create a 30/60/90 plan to transition all employees, customers, processes, and assets. During this time, it is customary for you to work with Mr. Briggs and the Endurance Eagle support team in a consultative role for three to six months to ensure proper transfer of the business and ensure your legacy is safeguarded for the future. Contact us now to learn more about selling your business.