The process begins by connecting with Weston Delray
Our investment process starts with an introduction. Usually this originates from our joint networks.
Contacting Weston Delray Directly
Business owners often contact us directly to determine if we are interested in acquiring their company or partnering with them to invest in and help grow their business.
Intermediary
In other cases, intermediaries, including business brokers, investment bankers, commercial bankers, accountants, etc. introduce business owners to Weston Delray Group. Frequently, the intermediary has been engaged by the business owner. Intermediaries often play an important role in advising enterprises on selling the business.
The process continues with
Learning about your business
Usually at this stage of the process begins with the exchange of confidentiality agreements.
Once this have been executed we will look to obtain critical financial data to start the communication process. Some of the information will include:
Usually our initial screen of the information will be followed up with a list of questions and communication around what we consider the critical areas. This will be followed up by a go or no go communication to the next step.
If we move ahead, Weston Delray Group will typically discuss a term sheet and arrange an on-site visit.
Term Sheet to letter of intent
Business reveiw
At this point we have spent extensive time together. We have a mutual understanding of the proposed transaction and a comfort level with each other.
The process becomes more complex and more formal.
Additional information is exchanged, and additional site visit may take place. As Weston Delray Group continues to study the business, and you learn more about Weston Delray, further discussions regarding company valuation and transaction structure occur.
It is not unusual that any term sheet previously issued will be subject to change as the process moves forward and the sides exchange ideas.
Letter of Intent
A Letter of Intent, or “LOI”, is a formal, written document indicating the terms a buyer is offering a seller in a proposed acquisition or investment. An LOI states a serious intent, by both parties, to carry out the proposed transaction. Weston Delray Group is very selective about issuing LOIs because they indicate that we will be dedicating substantial resources to acquiring your business under the terms outlined in the LOI.
From letter of intent to closing
Due Diligence
Due diligence is a rigorous 30 to 60 -day review of the business and includes a detailed analysis of accounting history and practices, operating practices, customer and supplier references, management references and market reviews. The due diligence process is managed by a Weston Delray Group partner (s) whom may request assistance of third party advisers such as accountants, engineers .
Financing
Weston Delray Group uses some of its own capital to complete acquisitions. But, in all cases, we use some form of debt financing. The debt financing process includes identifying lenders who have an interest in the commercial space under discussion. Weston Delray maintains strong relationships with lenders at all levels of the food chain to complete acquisitions.
Closing
Before the closing dinner the important step of legal documentation and funding must be completed. Upon completion of the legal process, the required funds are wired to the seller and the acquisition is complete. When the deal is finally done, we can celebrate new beginnings.