Frequently Asked Questions
1. What types of businesses does Linear Junction seek to acquire?
Linear Junction primarily focuses on acquiring B2B (Business-to-Business) companies within Texas, specifically those with gross revenues ranging from $5 million to $75 million. We are interested in companies that have a strong market presence, a solid customer base, and potential for growth.
2. How does the acquisition process start?
The process begins when you reach out to us with interest in selling your business. We will then schedule a confidential discussion to understand your business and objectives. If there's a potential match, we proceed with requesting essential documents for a preliminary assessment.
3. What documents do I need to provide during the initial assessment?
Initially, we'll need your balance sheet, income statement, accounts receivables and payables (last 60 days), and corporate documents. As we move forward, additional documents related to taxes, banking, and other relevant areas may be requested.
4. How is the fair market value of my business determined?
We begin by considering your asking price as the starting point in our evaluation process. Our team conducts a thorough assessment of your business using provided documents, industry standards, market trends, and financial performance to determine its fair market value. Throughout this process, we engage in open communication to clarify details and ensure an accurate assessment.
5. What is a Letter of Intent (LOI), and what does it signify?
A Letter of Intent (LOI) is a document that indicates our serious intent to move forward with the acquisition, pending due diligence. It outlines the basic terms of the deal and serves as a preliminary agreement before the final purchase agreement.
6. What happens during the due diligence process?
During due diligence, we conduct an in-depth review of all aspects of your business, including financials, operations, and legal matters. This may involve requests for additional information or access to ensure a thorough evaluation.
7. How long does the acquisition process take?
The timeline can vary, ranging from three months to a year, depending on the complexity of the business and the due diligence findings. Our goal is to ensure a smooth and efficient transition, with clear communication throughout the process.
8. What is the transition period, and how does it work?
The transition period is the time following the acquisition when we work together to transfer ownership and operations smoothly. The duration and specifics are tailored to each business, with our team providing support to ensure continuity and stability.
9. Will my business retain its identity and staff after the acquisition?
Our approach is to honor the legacy of the businesses we acquire while seeking opportunities for growth and improvement. Decisions regarding the business identity and staff are made with respect to the company's history, culture, and strategic direction.
10. How can I start the process or get more information?
If you're considering selling your business or simply want more information about our process, we encourage you to contact us. An honest and confidential conversation is the first step to exploring the possibilities of a partnership with Linear Junction.