Services for Angel Investors and Business Buyers

Are you seriously considering buying or investing in a business? Are you intrigued by the idea of becoming an angel investor?  If your answer is “yes” to either of these questions, then read on!

  • Increase Deal Flow — We help angel investors and business buyers find more, and better, investment opportunities
  • Due Diligence — We do a deep dive into the most promising companies to uncover hidden problems and opportunities
  • Management Consulting  — Once you have decided to make an investment or a purchase, we can help you get the company in shape

Increase Deal Flow

If you are passively or actively looking for new and interesting investment opportunities, we can dramatically increase your deal flow. Each year we speak with literally hundreds of promising start-ups and small businesses.

The first step is for us to sit down together and create an ideal investment opportunity profile for you. Variables include industry verticals, revenue potential, historical revenue, number of employees, geographic location, etc. Once we understand what you are looking for we can reach out to our extensive network of business owners and entrepreneurs to find opportunities that meet your profile. Whenever we find a candidate, we’ll do some preliminary due diligence, and if all signs are GO, we’ll pass the candidate’s information on to you (without revealing your name or contact information to the business owner) so you can make a decision without any infringement on your privacy.

Due Diligence: What you don’t know WILL hurt you

If you are planning on buying or investing in a company, Ground Floor Partners’ Due Diligence Service may be the right choice for you.

We’ll evaluate the opportunity, risks, limitations, and market potential based on in-depth interviews with company management, owners, employees, customers and partners. We’ll supplement our interviews with a thorough analysis of internal documents, third party industry articles and our own independent research and analysis.

Our due diligence process goes far beyond the usual straightforward accounting/financial analysis prepared by an accountant. Many businesses have incomplete or inaccurate financial statements, and start-up projections are often based on fantasy rather than reality. We go much further than financial analysis.  For established businesses with a track record and a solid customer base, we’ll analyze their past, present and future. We’ll perform a SWOT analysis and a PESTLE analysis. We’ll do the same for start-ups, but since they have limited history, we’ll focus on their current position and future opportunities and threats.

Due Diligence Questions

During our due diligence investigation we will cover literally dozens of issues. Here is a small sample of the kinds of questions we typically ask:

Are there any outstanding, pending, or previously settled lawsuits against the company or members of the senior management team?

  • Does the company have significant debt?
  • Is there major infighting between members of the senior management team?
  • If the company has a strong top and bottom line now, is this sustainable or is it just a short term phenomenon?
  • Has the company kept up to date on all federal, state, and local taxes?
  • If the company has a business plan in place now, is the plan based on fact or fantasy?
  • What do customers, partners, and industry experts say about the company?
  • Are there any emerging competitors who could quickly knock the company out of the marketplace?
  • Are there significant growth opportunities that the current management team may have missed?

Due Diligence Deliverables

At the conclusion of the due diligence engagement, you will receive:

  • A detailed report of our Key Findings, covering important aspects of the business opportunity: ownership structure, management team and staffing, history, business model, market analysis, sales and marketing, operations and profitability, tangible and intangible assets, competition, key issues, and opportunities for growth.
  • Recommendations on whether and how to proceed, how best to address key issues that we have identified, and what approach to take in making or evaluating an offer.
  • Valuation Analysis based on discounted cash flow of projected future earnings, and comparisons with peer group and industry benchmarks.
  • SWOT Analysis.
  • Risk Analysis covering the full range of alternative outcomes that could impact future returns on this investment.

We know that time is of the essence when there’s a deal on the table. So, you can count on us to accelerate the process as necessary to come to a fast but accurate result. We’ll also give you preliminary recommendations whenever possible, even as work continues.

Management Consulting

The same services we offer to entrepreneurs and business owners are also available to angel investors and business buyers. We are in the business of helping businesses grow, so in the end it doesn’t really matter who we work for. We can provide shorter term consulting engagements or we can act in an interim management capacity. Interim management engagements usually involve at least a 6 month term and can be full-time or part-time.

Contact us now to start a confidential discussion