Investment Approach
Step 1: Introduction Phase
Introductory discussions about opportunity with seller / intermediary through initial telephone call or on-site meeting at company's corporate offices prior to signing of confidentiality agreement ("CA")
Preliminary assessment of opportunity and strategic fit by N-Squared team
Step 2: Initial Review Phase
Signing of CA followed by initial review and discussions of strategy, operations and financial condition of business (including review of audited financial statements)
N-Squared will build a preliminary but detailed financial model to evaluate opportunity
N-Squared will determine a preliminary purchase price based on a number of factors, including the company's historical financial performance and our belief of the company's ability to achieve its financial forecast
Preliminary discussions with respect to deal structure and purchase price
Detailed assessment of opportunity and review of letter of intent by N-Squared investment team
Preliminary discussions with capital partners regarding financing terms, including establishing support / confidence letters (if needed)
Step 3: Letter of intent "LOI" phase
Submission of LOI, including preliminary indication of purchase price
Request for period of exclusivity to commence detailed diligence
Step 4: Detailed due-diligence phase
Conduct detailed due-diligence of business, including site visits, interviews with employees, customers and other partners, financial diligence and legal and tax diligence
Conduct quality of earnings analysis in partnership with independent, third-party accounting partner
Establish detailed 180-day action plan
N-Squared's diligence team will include lawyers, accountants and other advisors to develop a comprehensive understanding of the business
Confirm preliminary terms as set forth in LOI
Confirm financing availability
Prepare and negotiate definitive agreement and other legal agreements, as relevant
Prepare for post announcement activities, including transition plan and plan to finance and close transaction
Step 5: Signing of definitive agreement and deal announcement
Sign definitive agreement and other legal documents and announce transaction
Step 6: Post investment support
Post-investment, the N-Squared Team will work closely with the existing management team, shareholders and other partners of N-Squared via an active board level interface with the ultimate goal of helping the business achieve significantly greater market footprint and operational scale. Preliminarily, we expect to execute a three-pronged long-term growth strategy to enhance and create value at the acquired business.
First, we will aggressively look to execute an M&A-driven growth strategy. We see M&A as a strategic value driver to enhance the acquired business's product offerings, drive economies of scale, and realize potential cost synergies.
Second, we will seek to invigorate initiatives related to organic growth of the acquired business, with an eye on our macro thesis that only those businesses that consistently deliver quality and value will have long-term staying power.
Finally, a key tenet of our thesis is to pursue global growth opportunities and, accordingly, we will seek to actively leverage the acquired businesses as a platform to drive ex-U.S. growth, as applicable.
© 2011-2017 N-Squared Growth Capital, LLC. All rights reserved.
The information on this website is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any interest in an N-Squared managed investment vehicle. By using this website you agree to the terms and conditions in the Legal Notice. Legal Notice