Although the financial metrics are important while preparing your company for sale, it also important to develop an overall sensible business roadmap. Of course, no buyer would expect you to be an expert in every facet of operating a business, but if you establish your company on strong foundations, a buyer will be able to begin expanding your company right away.
Here are just a few characteristics that Glam Brands looks for in a company that we might buy.
- Geographical Constraint –
We only look for businesses based in the US. This limitation is because our financing partners are based in the US and it is much easier to conduct due diligence for a US based entity. However, we are also open to businesses based in Canada, UK, Australia and Western Europe but there has to be a very strong value proposition
- Legal Entity – We acquire company sale via share purchase – We do not buy brand IPs or social media pages. You must have a legal entity and every Intellectual Property (trademark, domains, customer list, Amazon store etc.) should be assigned to this legal entity and we should be able to subscribe to the shares of this legal entity.
- EBITDA or SDE should be above US$500k – since the bulk of our acquisition is facilitated using debt, it is important the business is already generating a sizeable cash follow to service the debt without our intervention
- SBA Pre-qualified : Although this is not mandatory but definitely gives your company an edge over others and we can move fast and close the deal if your business is SBA pre-qualified
- Seller Financing – All our deals are structured using Seller Financing in some manner. We do this avoid businesses that are typically pump and dump
- POD and Dropshipping – We do not acquire POD or Dropshipping businesses
- Founders willing to stick around – Again, not a mandatory criteria but preferred. Our team is rapidly expanding and if the founders are willing to be part of the extended team -we love to work with our Founder Partners even beyond their own brand.