When you sell to NGP, you get more than just a payout.
Flexibility. Passion. Support. Security.
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Partnerships are at the heart of everything we do. When you partner with NGP, you’ll enter a close and collaborative relationship with one of our EIRs. It’s our goal to make the entire process as seamless and efficient as possible.
Communication, early and often, is critical to an efficient transaction. During the early stages of the process, you will work closely with one of our EIRs (dedicated to you and your business from here on out) to collaboratively set expectations. We cover everything we need from you and everything you need from us in order to make the next steps as smooth—and helpful—as possible for all parties.
Once we have agreed upon the commercial terms of the transaction, we take a closer look at historical financial statements and complete tax and legal diligence to ensure we have a complete picture of your business. While the NGP deal team will be focused on execution of this phase, the EIR will be your partner in the process ‘holding your hand’ as much or as little as needed along the way.
Well in advance of the transaction closing, we will work together to establish a detailed transition plan based on your personal desires and the needs of the business. Because each case is unique, our model is built on flexibility. You can free yourself from the day-to-day operations or step away entirely—we have successful experience in both and everything in between.
This is where we execute on the detailed transition plan thoughtfully established prior to the transaction. A lot is learned during diligence, but it is really those first 90 days of stepping into the business where the EIR turned CEO can experience the nuances of the business and establish relationships with both employees and key customers—your involvement with this is often quite valuable.
Is your business the right fit?
$5 – $50 million in annual revenue
$2 – $6 million in annual cash flow
Track record of consistent revenues and profitability
Growing business in a growing industry
In need of full succession plan or augmentation to the management team.
Seeking full or partial liquidity to diversify wealth.
Looking to surround the business with experienced, committed advisors.
Meet our EIRs
Let’s start with a conversation. Selling your business can be a very personal and emotional decision. We would be happy to talk through what options you have, what the process looks like, and what it might look like for you personally—both financially and operationally.
That’s not a problem. The NGP model allows for transition flexibility. In the past, we’ve successfully partnered with business owners that are not ready to step away entirely but want to take some chips off the table to create personal liquidity and free up their time to spend with family, play golf, travel, etc. In these cases, the business owner retains a portion of ownership and remains involved in the business where they are most interested and valuable—maybe in a sales capacity or maintaining relationships with key customers. We’ve also successfully partnered with business owners that are ready for retirement and want to step away from the business entirely. In these cases, we take a collaborative approach to establish an effective transition plan—keeping in mind that each case is unique—this may be a 3 to 12 month transition period.
The process usually starts with a conversation to better understand the business and your personal desires and expectations. If there is a potential fit, we ask for financial statements and likely have follow-up conversations to further our understanding. Next, we’d have a conversation about valuation—our team will share how we arrive at a fair price for your business. We’ll follow up with a Letter of Intent (LOI), which formally lays out our offer. After the LOI is executed, the diligence phase kicks off. Here, we’ll dig further into the financial statements simply to make sure we aren’t missing anything—we take a “trust but verify” approach. Then we’ll collaborate with you and your advisors on the legal documentation (purchase agreement, employment agreements, etc.) and ultimately close the transaction.
Generally, we think about valuation as a multiple of earnings or EBITDA (earnings before interest, tax, depreciation, and amortization) though it is a bit more complicated than that. For example, the nature of revenue is a critical driver of value. A business with contractual recurring revenue is generally more valuable than a business with project-based or non-recurring revenue. Additionally, a more professionalized business with bench strength (i.e. an experienced leadership team) is generally more valuable than a business run entirely by one or two individuals—all else being equal—but that is not to say this type of business can’t be valuable. There are many factors that go into how we think about valuation because each business is unique. We would be happy to discuss the specifics of your company if you are curious.
If you are going to sell your business and truly care about its employees and legacy, we firmly believe we are the best partner. We offer flexibility—if you want to remain involved and participate in the continued growth of the business or if you’re ready to cash out and step away entirely, we will guide you through the entire process. We offer committed capital—there is no risk of you showing up to the closing table only to find the buyer wasn’t able to secure financing. We’re dedicated to the preservation and growth of your legacy. We enter every partnership with the belief that each business is great, and with the addition of one of our EIRs and advisors, it’s primed for long-term growth.