We offer vendors several benefits.
We are not a traditional private equity fund backed by institutional investors and as such we are not restricted by fiduciary responsibilities, extensive due diligence requirements / decision-making processes and returns targets.
We package and structure transactions that meet the objectives of vendors – and have substantial flexibility to create unique deal terms and thereby assist corporate owners mitigate the risks and liability associated with retaining a business.
- Recognise that his business may have limited interest amongst traditional buyer groups.
- Would like a fair valuation and terms that enable a full divestment and mitigation of risks or liabilities.
- Want to avoid a failed process which may affect the performance of the business and demoralise employees.
- Prefers a negotiated solution – rather than a time consuming and disruptive auction process.
- GPP often make an unsolicited approach and offer vendors the opportunity to secure a divestment through a low risk one-on-one process.
- We make investment decisions on an informed yet pragmatic and constructive basis – which means we can conduct a focused and efficient process for all parties involved.
- Discussions typically follow a 2-step process which limits owner’s investment of time and resources prior to a firm offer has been presented and the parties have agreed on valuation, terms and transaction structure.
- In contrast to traditional buyers who typically need to undertake extensive and time consuming “tick-the-box” due diligence to meet fiduciary obligations – GPP takes a more pragmatic approach to commercial and operational due diligence and focus more on the financial aspects and the structuring of the transaction.
- Work in a transparent and co-operative manner to seek a “win-win” solution.
- Work in full confidentiality and seek to minimise business disruption.
- Consider situations with higher risk and requiring more involvement then traditional buyers.
- Willing to take on complexity, liability and risk – actual and contingent.
- Greater flexibility as to holding period, terms and transaction structuring.
- Consider complex transaction structures/carve-outs and redemption of existing creditors possible.
GPP vs Other Buyers
Other Buyers – Typical Approach
- Make offer with the intention to down-adjust during protracted exclusivity period.
Lengthy Transaction Process
- Long and complicated “tick-the-box” due-diligence process.
- Transaction process stretching over 6-9 months from initial contact to closing.
Long List of Reps & Warrants
- Require long list of reps and warrants which expose vendor to future liabilities.
- Narrow investment mandate and limited flexibility to structure terms.
Prefer Established Stand-alone Businesses
- Focus on stand-alone businesses and limited experience with carve-out processes.
Slow Decision-Making Process
- Bureaucratic decision process which delay the transaction discussion.
- GPP present terms that it intends to transact upon.
- Short due-diligence process focused on key issues.
- 30-60 day timeline to closing with a motivated vendor.
Focus on Business
- Limited reps and warrants. GPP focus on making investment a success.
Seek Most Suitable Structure
- Significant flexibility to structure transaction to meet Vendor’s requirements.
Significant Carve-Out / Transition Experience
- Focus on carve-outs and significant experience with separation process.
Very Responsive & Proactive
- 100% discretion over project and can respond in hours as opposed to weeks.