How does the due diligence process work?
Once you complete the initial submission, an associate your review your responses and determine whether or not they meet our broad investment criteria. If it does, an associate will contact you for further information (including but not limited to three years of financial statements prepared in accordance to GAAP, tax returns, and a business plan). Further, we like to take a hands-on approach to our invested capital; we will definitely make several site visits before presenting any term sheet or offer letter.
How long does the due diligence process take?
It varies from company to company, and is a function of the amount of capital required for investment. However, we can determine whether or not we’re interested in investing in your company in approximately 30 days.
What is the typical exit strategy?
Our exit strategy differs by transaction, and we’re unconventional in the sense that we don’t have to have one. If the business fits in our portfolio of companies, we may not require an exit strategy in our term sheet or offer letter. We are interested in building world-class organizations; we are more interested in building platform companies, as opposed to attractive business for sale to larger organizations.
My business is not incorporated. Is my company eligible?
If your company meets our investment criteria for small business private equity investments, you are eligible. However, we will require incorporation as a C-corporation or organization as a limited liability company before we make any investment. This is intended to protect all stakeholders from any potential legal liability.
My business is not in a regulated consumer product business. Is my company eligible for investment?
Unfortunately, we are limiting our investment focus to companies in the consumer products and healthcare industries (e.g. cosmetics, dietary supplements, functional foods, and pharmaceuticals). Additionally, we prefer companies that have an excellent track record in complying with the myriad regulatory bodies involved (e.g. U.S. FDA, Department of Health Services, International Organization of Standards, NSF International, United States Pharmacoepia, and the Natural Products Association). |
