Advantages to Vendor

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.

Key Vendor Interests
  • 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.
What We Offer
Our approach is to work in a collaborative way and seek a solution that works for both vendor and GPP.
Smooth 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.
Win-Win Mentality
  • Work in a transparent and co-operative manner to seek a “win-win” solution.
  • Work in full confidentiality and seek to minimise business disruption.
Considerable Flexibility
  • 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

Hidden Agenda

  • 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.

One-Fits-All Approach

  • 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 Approach

Trusted Partner

  • GPP present terms that it intends to transact upon.
Proactive and Focused
  • 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.
Copyright © Green Park Partners. All Rights Reserved