Executives who build a relationship with Blackmore are able to leverage their time and efforts more efficiently. Our services assist executives in refining and focusing their business plan, which dramatically reduces the time to market and execution of the strategies. We work with executives to assist them in producing a compelling thesis along with an institutional quality, detailed business plan. Since we are funded by private equity, so there are no fees assesed to our exectutives for our services.
These services have permitted our clients to present their business plans to a wider investor audience, to secure more favorable capital structures, and to negotiate terms which give them a greater role in the company, superior deal economics, and greater up-side potential. Our process begins with finding the best and most qualified executives in an industry, who are looking to either purchase a business or raise capital to enhance their existing business. The executives we work with have three main qualities:
- Strategic insight and relationships that can lead to a transaction opportunity in an industry where they have established a strong operating history.
- Significant experience in operating a middle market to large and complex operation, with a minimum of $100 million in revenues or $5 million in EBITDA. Positions held have included: CEO, COO, CFO (with operational experience), President, EVP, VP, or GM. Usually, if executives lack the background or experience to operate a company of at least $100 million revenue or $5 million EBITDA, Blackmore arranges for them to partner with other executives who have the requisite experience.
- Connections with and a vision of target acquisitions that would represent a good fit for their business plan and over all strategy. Our target executive will usually meet the following criteria:
- Deep industry experience
- Measurable results outside of the market
- A track record of creating significant shareholder value
- Dedicated focus to growing and transforming companies
- A deep understanding of the macroeconomic and microeconomic issues important to producing detailed forecasts
For executives who do meet our criteria we also offer a way for you to work with Blackmore. We pay fees to any executive that brings us an actionable deal that closes. This fee is only paid if the executive does not retain an active role in the company after closure (i.e. President or VP). The fee can range from 5% to 40% depending on the level on involment of the executive. Below are further details on the entire process.
GUIDELINES FOR REFERING COMPANIES FOR SALE
This guide will assist you to get paid for finding companies for sale. By introducing Blackmore Partners (PECO Co-Investment fund) and our Private Equity partners to parties interested in selling their companies, you will earn a commission upon the deal’s closing. An average commission is $200K.
Blackmore is paid by Private Equity firms to work with you to undertake actions that will result in our private equity clients’ acquisition of a private company with revenues between $35M and $200M and at least $5M EBITDA. If a company’s EBITDA is less than $5M, PE will consider it as an add-on acquisition. An add-on acquisition should be no less than $1M in EBITDA unless it is distressed. It is our job to facilitate this process and we are paid by PE upon successful completion of an acquisition.
WHAT TARGETS FIT OUR REQUIREMENTS:
- Companies located in U.S. and Canada
- Private companies with sales between $35 and $200M
- EBITDA between $5 and $10M
- Companies whose owners are willing and ready to sell
- Distressed companies
- Companies that are not represented by investment banks or brokers
WHAT YOU GET PAID
Backmore Partners receives anywhere from 1-2% of the total deal closing price.
- Out of that you, as our connector, will receive anywhere from 5%-40% of Blackmore’s take, depending on how involved you choose to be in the process. We prefer executives who will fully manage the process and we pay them 40% of Blackmore Fee.
- If you provide a name of the target the executive who has impact on sale and set up the first call with him you get paid 5% of Blackmore Fee.
- If you work with us getting all the necessary information such as strategy, getting all the necessary financials, continuously communicating with the seller including setting up meetings with buyers we will pay you somewhere in the 40% range of Blackmore’s fee. You are being paid to be the account manager.
- For example, if the total deal is $75M, Blackmore Partners would receive anywhere from $750,000 to $1.5M. From that, you would receive anywhere from $37,500 (5% of $750,000) to $600,000 (40% of $1.5M).
- If you find an opportunity, we need you to send an email stating the industry, revenue and EBITDA and the sellers asking price.
TYPES OF TRANSACTIONS BLACKMORE PARTNERS IS LOOKING FOR
- carve-out’s or unnatural divisions, divisions that are don’t fit the core strategy of an organization
- Consultant buy-out, you consulted the company and are looking to buy out the owner
- President/COO run companies, current owners have left the operations of the company to the president or COO, president/COO is looking to buy-out the company
- Estate Plan/Family Transition, children of the retiring owner don’t have the expertise to run the company
- Broken Investment Bank Process, investment bank unsuccessfully marketed the company
HOW WE GET IT DONE
- We will identify private equity groups from our database which includes over 1400 private equity groups in the US and 8000 worldwide.
- If you decide that the company you are mentioning to us is right for you we are willing to work with you to find the right private equity partner (we will not share our fees but you will be getting an equity stake in the transaction)
If you know of such companies please send an email stating the industry, revenue and EBITDA.
Send us an NDA and we will sign it. The email should state the Revenues and EBITDA, Website, contact person, 5 year historical financial statements and your angle on the specific opportunity. Once we receive this I would like to schedule a call with one of our associates to guide you through the process.