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How we work with our partners
The Kingmakers Mission
1. Find partners that will be the best fit for the Kingmakers community.
2. Ensure that each of our partners acquires a great business.
3. Ensure that each of our partners businesses succeeds post-acquisition.
The Kingmakers Partnership Philosophy
The Kingmakers team has acquired over 20 businesses over the past 5 years. We have built systems, procedure, and relationships to streamline and optimize each step in the acquisition process.
Our team has developed a proprietary 6-step system that we implement with our partners during the acquisition process.
Phase 1: Deal Sourcing & Screening
- We leverage our custom-developed analysis software and well-trained team to identify, analyze, and connect with thousands of off-market businesses a week.
- We also have relationships with multiple top brokers to get a first look at their deal-flow.
- We effectively streamline seller communication and pre-offer diligence to gather enough information to vet the deal and put in a non-binding offer before we find a partner to acquire the deal with.
Phase 2: Partner Onboarding
- We do a deep dive with our partners to understand what type of business (size, industry, business model, ideal growth opportunities) is the best fit for their unique skills and interests.
- We then match our partners to a deal in our system that has already been sourced and vetted by our team.
- We bring our partner up to speed with the current status of the deal and then connect them with our lending partners to get them pre-approved for financing.
- We then outline next steps and what to expect moving forward.
Phase 3: Offer & Financing
- We help our partners structure and negotiate a non-binding offer (LOI) that is appropriate based on an individual company’s historic performance, risks, and future opportunities.
- We help develop a financing plan that de-risks the business and provides enough cash flow to invest in growth.
- This typically includes a combination of seller financing/earnouts, our partner’s capital, Kingmaker’s own capital, as well as financing from banks and other equity providers.
- We work with our lending partners (as appropriate) to pre-qualify each deal in advance of presenting a binding offer to the seller.
Phase 4: Confirmatory Diligence & Closing
- We help our partners conduct deep diligence on the financials, operations, and competitive landscape of each deal using our internally developed templates and tools.
- We also have relationships with external partners that can help conduct diligence on behalf of our partners if preferred.
- We work with our partners to craft closing documentation using our legal templates/counsel or those prepared by our Partner’s own counsel as preferred
- We work with our partners as well as various counterparties (banks, brokers, escrow agents) to ensure a seamless and efficient close process.
Phase 5: Business Onboarding & Growth
- We work closely with our partners during the seller transition period to ensure all key knowledge and relationships are transferred from the seller.
- We then work with our partners to develop a systematic growth plan for the business that leverages the learnings in the operating and competitive diligence processes as well as our own unique skills and experiences.
- We also work with our partners to systematize key areas of the business including: both back-office functions (accounting/finance, support, staffing, vendors/contractors) and growth (identifying new monetization and traffic opportunities, developing continuous lead generation systems).
Phase 6: Ongoing Partnership
After the acquisition and onboarding phase is complete, the Kingmakers team works with our partners to continually grow and optimize the business in several ways including:
- We help identify and train potential general managers for the business owner.
- We provide access to a vetted list of vendors for key back office and growth services.
- We schedule regular “mini-board” meetings to discuss progress on key initiatives and regularly bring in key strategic advisors to attend these sessions.
- We help regularly refresh the growth plan and company strategy.
- We provide continuous feedback, guidance and training on new growth strategies that we learn from our other partners.
- We help at length with strategic initiatives including identifying , closing and integrating add-on acquisitions as well as positioning the business for exit.
We know all of the above is a bit of a mouthful – but thanks for sticking through this to the end. If anything, we hope this shows you a bit of how we aim to work together to buy your first (or next) business.