What is the scope of Blackmore Partners involvement in the deal?
We divide the labor between the executive and our team to allow each party to specialize in their area of expertise. The executive is responsible for researching and contacting target companies and writing the corporate strategy document. The executive must be available to meet with private equity firms. We are responsible for assisting in qualifying target companies, analyzing and revising the corporate strategy document. And, most importantly, pitching the deal to private equity firms to find the right partner and fit to close the deal.
When does the job start?
When does it end?
How much time is required?
The work begins after we qualify the executive as eligible to take part in an executive-led takeover. Executives will not be compensated until after a private equity firm signs a letter of intent to purchase. However, the process is free to executives; only the private equity firms pay us. Assuming the deal is closed, the executive will lead the company, provided that the private equity holds their investment in the company.
Should a deal not close, the process will continue until either party determines that there is little to no chance of a deal being closed. Generally, executives must commit to a minimum of 20 hours per week to work on the deal. Nevertheless, it is recommended for executives to do consulting concurrently with working on the deal to ensure a source of income and to remain active and current in their respective industries.
What is the success rate of selecting targets and closing a deal?
In general, 1 out of 10 targets are interested in selling their company at any given time. On average, 1 deal will close for every 10 deals we pitch to private equity firms.