Key Bridge Partners

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FAQ
1. What are the basic steps in the acquisition process? 2. Can I sell only part of my company? 3. What is Key Bridge Partners' role after the deal closes? 4. How does Key Bridge Partners value a business? 5. How will Key Bridge Partners finance its purchase of a company? 6. Does Key Bridge Partners depend on seller financing for its acquisitions? 7. Does Key Bridge Partners preserve the legacy of the companies we acquire? 8. What is Key Bridge Partners fee structure? 1. What are the basic steps in the acquisition process? i. Introduce company through a phone conversation or an informational letter. We will provide a nondisclosure agreement or will sign one provided to us. ii. Provide companys recent financial information to Key Bridge Partners. iii. Depending on the depth of previously provided information, Key Bridge Partners may request a meeting with the business owner or president to explore further. iv. Key Bridge Partners provides a "Letter of Interest" with a value range for the business. v. Key Bridge Partners visits the company. vi. Key Bridge Partners assesses the companys operations, financial performance, and served industry. vii. Key Bridge Partners develops a 5-year operating plan and associated financial forecast, which is the basis for the companys valuation. viii. Key Bridge Partners provides a "Letter of Intent" to the owner or intermediary. ix. Key Bridge Partners performs additional due diligence and secures financing. x. Complete transaction documentation and closing. 2. Can I sell only part of my company? Yes, as long as the part being sold can be separated from the remaining business. 3. What is Key Bridge Partners' role after the deal closes? It depends on the management needs of the company. If a strong management team is in place, Key Bridge Partners typically would not take day-to-day operating roles; but would provide support to the company through specific value-added projects and as members of the Board of Directors. Key Bridge will help the company with strategic planning, operating improvements, growth challenges, financing, add-on acquisitions, etc. allowing the operating management the freedom to run the business. If the principal is retiring or there is a gap in the management team, Key Bridge Partners would provide necessary operational talent to bridge the transition of ownership. Once stabilized, Key Bridge would hire permanent managers where needed. 4. How does Key Bridge Partners value a business? Key Bridge Partners prides itself in offering the highest, fair price possible while still preserving the legacy of the company. We take a collaborative, fully open approach to our valuation, working closely with the seller. Key Bridge Partners will value a business based on its profitability, cash flow, assets, and historical performance, plus intangible factors such as: Strength of management team beneath current owners Consistency of profit margins Level of value-add in products Cyclicality of served industry Length of customer relationships Growth in market share Impact of owners leaving operating roles 5. How will Key Bridge Partners finance its purchase of a company? We have access to a select group of institutional investors with dedicated funds raised specifically to invest in small and middle market companies. We structure the transaction so that the entire purchase amount (regardless of the mix of debt and equity) is provided by Key Bridge and its institutional investors. 6. Does Key Bridge Partners depend on seller financing for its acquisitions? Key Bridge Partners and its institutional investors are very comfortable with all cash deals, and do not normally depend on seller financing. In the event that the future business performance has a high degree of uncertainty, we may ask for a modest seller note in order to ensure that the business performs to Key Bridges expectations. 7. Does Key Bridge Partners preserve the legacy of the companies we acquire? Unlike some purchasers of companies, our intent is to build upon the success created by the prior owners. Where it makes sound business sense, we wish to: Provide existing employees continued employment and advancement opportunities Build upon the company culture Maintain and globalize strong brand names 8. What is Key Bridge Partners fee structure? Investment Group Key Bridge Partners will pay intermediaries a finders fee for opportunities brought to us upon close of the transaction. We are happy to sign Non-Disclosure Agreements. Services Group Key Bridge Partners only charges for services quoted and delivered. During the search, strategic analysis and due diligence phases, we charge on a consultancy basis. Success fees are earned only when the deal closes.