What are the steps involved in completing a transaction?
Each transaction is different. NGP’s Entrepreneurs-in-Residence and investment professionals strive to create a transaction process that is catered to and comfortable for you and progresses as efficiently and smoothly as possible. We aim to target 90 or less days depending on the flow of information and the preparedness of the seller.
At a high level, there are several major steps involved in the sale of a business:
You and NGP sign a non-disclosure agreement, a document to ensure any proprietary information shared remains confidential.
The Entrepreneur-in-Residence and NGP team send an initial request for financial information. After receiving this, we process the data and reach out to ask any clarifying questions.
When appropriate, our investment team will join our EIR in visiting your headquarters so that we, as a collective, can discuss the process and your business in person, at your place of work.
NextGen provides you with a written, nonbinding letter outlining the terms and price of a prospective deal.
This process takes approximately 90 days, and includes:
- Further Business Diligence
- Financial & Tax Diligence
- Lender Diligence
- IT Diligence
- Background Check
- Insurance Diligence
- Legal Diligence
Assuming things go well with due diligence, we will work with you (alongside your legal counsel) to hash out the details of the purchase agreement, which outlines in detail the legal terms governing the transaction.
When all the details have been agreed upon, the parties will each sign the transaction documents.
The team at NextGen Growth Partners is committed to preserving your legacy and crafting a bespoke transition. Through collaboration, we are determined to come to the best possible outcome for you and your business effectively and in a timely fashion.