The First Call Is Simple. The Work After It Is Structured.
The plain-language sequence from first conversation to closing.
1. First Conversation
The first conversation is for fit. Is there a genuine reason to continue? If the answer is no, the process ends here.
2. Financial and Operating Review
If the first fit is real, we ask for the basic facts: financial statements, customer mix, management structure, and the owner's transition timeline.
3. Trust-and-Respect Test
Not every deal ends in the numbers. Some end because the relationship cannot support a long process. If the conversation does not reflect mutual trust and respect, we do not proceed.
4. Internal Screen
A target that passes the first review gets a written internal screen. It identifies what is weak, what is promising, what still has to be proven, and what would end the deal.
5. Pricing Conversation
Only then do we begin talking seriously about value and terms. That sequence reduces the odds of a significant retrade later.
6. LOI and Exclusivity
A signed letter of intent starts the live transaction. Both sides know the process is real.
7. Diligence
Diligence confirms what we believe we know. Financial, legal, customer, management, and operating facts are all tested.
8. Capital Work
Capital work runs during the live process, not after it. The structure is tested against lenders, downside cases, and final sources-and-uses logic while diligence is underway.
What a Funding Bench Means
A funding bench is not a slogan. It means lender relationships, capital-partner relationships, and advisor relationships established in advance — so a real transaction does not start from zero.
That does not mean every dollar is pre-committed before a target exists. It means the path is credible, the counterparties fit the model, and the process is already understood.
How We Think About Structure
Every structure must pass three tests before it advances.
| Scenario | Requirement |
|---|---|
| Base case | DSCR of at least 1.50x |
| 20% revenue decline | DSCR of at least 1.25x |
| 30% decline or covenant breach | Survival without rescue capital or lender goodwill |
No SBA. No add-backs that require a charitable reading of history. No structure that depends on perfect operating conditions.
9. Management and Transition Planning
A founder exit is not complete until the operating handoff is real. That means management coverage, clear responsibilities, and transfer of customer and operating knowledge.
10. Closing Documents
Closing documents convert the agreed structure into binding legal form. No surprises.
11. Close and Transition
After close, the focus shifts to continuity immediately. Customers feel stability. Employees know who is in charge. Reporting begins early.
For a detailed look at what the first ninety days looks like in practice, see What to Expect After Close.
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