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Brick & Mortar Acquisitions
How we work with you offline
Our services and our economic model are identical to our online model.
- Help find the deal (whether off-market or via an external broker)
- Help conduct pre-loi diligence (which includes several seller calls, at least 1 (probably 2) site visits)
- Help negotiate an offer/loi
- Help find the right financing partner for the deal and help w/ the underwriting process
- Conduct detailed post-loi diligence (financial audit, marketing audit, operating cost opportunities, etc)
- Building and the initial implementation of a growth plan
- Help with the first 90 days of onboarding the deal
- Identifying, vetting, hiring, and training a GM
- Kingmakers charges a sliding scale fee based on deal size (reduced by 20% if it’s a brokered deal)
- Kingmakers invests in the business alongside you (20-35% of equity)
Why we like brick & mortar
- There is more deal flow – which means finding quality deals faster
- Insurance – you can insure against most downside scenarios with a brick and mortar business
- Faster funding – the SBA process generally takes less time with less friction since they have more experience with tangible asset businesses
- Growth through online channels – we apply our digital marketing expertise to grow the business post-acquisition
Although you do lose an element of location freedom and passive ownership with a brick and mortar, it’s probably not as much as you would think. It’s likely that we can find some great acquisition targets in your area, and with an experienced GM in place running the day to day, you can still get the business to a point where you are fairly hands-off. However, you should expect to be more hands-on during the first several months post-acquisition than you would be with a website.