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.
- Recognises that his business may have limited interest amongst traditional buyer groups.
- Want to avoid a failed process which may affect the performance of the business and demoralise employees.
- Would like a fair valuation and terms that enables a full divestment and mitigation of any risk or liabilities, or possibly terms that offers a retained involvement or ownership stake in a business.
- Prefers a negotiated solution – rather than a time consuming, disruptive and potentially failed auction process.
- Our process is to make investment decisions on an informed yet pragmatic and constructive basis to ensure an efficient and professional process for all parties involved.
- GPP often makes an unsolicited approach and offers vendor an opportunity to secure a divestment through a one-on-one low-risk process.
- No risk of a failed auction process as GPP is the initiating party and vendor will only be required to commit late in the process and when the prospect of a completed transaction is much clearer.
- Discussions typically follow a 2-step “explorative” 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.
- Also, in contrast to strategic buyers and traditional private equity buyers who typically are required to conduct extensive and time consuming 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 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 PE funds.
- 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.
- Provides Solution – Vendor mitigates risk and liability associated with retaining a business.
- Meets Objectives – GPP package a transaction to meet Vendor’s objectives on valuation, structure and execution.
- Transaction Certainty – Through an explorative process and therefore no risk of failed auction process.