How is Cornerstone different from others seeking to buy businesses?
Cornerstone, its principals and investors, are business owners that look to invest in or acquire high-quality niche businesses. We are passionate about these businesses and work hard to help the companies' managers and employees grow the business, prudently. In contrast to "private equity firms" our ownership period has typically been 7-10 years.
What are the steps in a typical purchase or investment transaction?
1. Sign Confidentiality Agreeement (CA or NDA)
2. Review pertinent information
3. Present owners with an Indication of Interest (IOI)
4. If mutually interested, present owners with a binding Letter of Intent (LOI)
5. Mutually agree to the terms and conditions of a LOI
7. Commence with on-site and offi-site due diligence
8. Prepare and distribute legal documents
9. Close the transaction
What types of information does Cornerstone require to assess an opportunity?
The information we typically seek that will allow us to make a meaningful assessment of an opportunity includes:
1. Phone and in-person discussions with owners and key managers
2. 5 years of detailed financial statements (income statements, balance sheets and cash flows)
3. Several year future sales projections
4. Customer history and % of total sales (Customer names withheld)
5. Organizational chart
6. Existence of key busines contracts
How long does it take to close a transaction?
Although every transaction is different, we typically close a transaction, after a LOI is mutually agreed to and signed, in 75-90 days.
Does Cornerstone invest in venture capital?
Cornerstone seeks to invest in or acquire businesses that have established products and/or services.