Elevate Your Small Business Acquisition with Gap Shares
Why We Focus on Small Business Acquisitions
Unlocking the Potential of Established Success
In a landscape crowded with risky startups, we set our sights on small business acquisitions for a reason.
Startups are far too risky for outside investment: While numerous platforms link investors with entrepreneurs, their primary focus tends to be on startups. These ventures, however promising, harbor inherent risks that are well-known in the business landscape.
Startup Uncertainties:
It's no secret that 1 in 5 startups face an early demise within the first year. By the fifth year, only half remain, and a staggering 70% falter before reaching the tenth year.
Underlying Causes:
Delving into the statistics, a striking 82% of small business failures are attributed to cash flow issues, 42% suffer due to a lack of demand for their products or services, and 23% crumble from inadequate team structures.
Our Distinctive Focus: Small Business Acquisitions
Herein lies the differentiator of our platform. Unlike startups, we direct our attention to established companies who have already proven they can overcome the statistics, boasting robust financial health with an established footprint in their industry. Each of our small business opportunities meets five key elements before they are ever presented to an investor:
Proven Track Record
Companies must have a minimum 5-year track record proving they have already out shined over 50% of their peers.
Financial Savvy
Each company must demonstrate a keen understanding of their cash cycles, successfully navigated competitive landscapes, and shown sustained profitability.
Market Demand
The businesses have validated demand for their products or services, showcasing a resilience that startups often struggle to achieve.
Team Expertise
With a track record in place, each company must have proven their ability to assemble the right teams for sustainable growth.
Our focus on small business acquisitions isn't just about safety; it's about investing in proven success, ready to be propelled further by visionary entrepreneurs. The fifth element is one of the most important for taking the company to the next level:
Optimizing Entrepreneurial Energy
Combined, these 5 elements represent the foundation of a company ripe for acquisition.
For an investor, these elements combine to make great investments all around to diversify holdings and protect downside risk, while growing stable returns.
If you think your small business acquisition meets these criteria, then we’re interested in hearing more!
How Our Investment Model Works
A Strategic Approach to Funding Success
Understanding the intricacies of small business acquisitions is our specialty. Here's how we make it work for you:
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Understanding SBA Loans
We recognize the importance of SBA loans in funding acquisitions. Having been through the process of applying for loans and getting funded, we understand the unique covenants and sometimes suffocating terms they put on an entrepreneur. While our country would not be where it is today without these types of loans, that doesn’t mean they aren’t without their challenges…
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Avoiding Control Loss
Unlike PE firms or VC groups, we empower entrepreneurs by working directly with accredited individual investors and family offices. Say goodbye to relinquishing control; say hello to strategic partnerships.
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Focus on Income Investments
Our investors are handpicked for their focus on income investments. We craft a tailored mix of investment capital that aligns with acquisition needs, with dividend chasing investors, ensuring healthy post-debt cash flow stability.
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Structured Redemption Period
We believe in a win-win scenario. A targeted redemption period ensures that investors receive dividends regularly, and entrepreneurs can repay without being burdened by crippling debt. Note that we said redemption period, not liquidation event. We aim to work with you to structure these strategic investments to be paid out over a specific time that does NOT require the entrepreneur to sell their company to pay off the investors.
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A Collaborative Cycle
Our process is a collaborative cycle where everyone wins – from the entrepreneur to the investor. Success isn’t just a destination; it’s a journey we navigate together.
How Gap Shares Adds Even More Value to the Entrepreneur
Beyond Introductions: A Holistic Approach
We don't just connect you; we elevate your acquisition journey with a holistic approach:
Investor Vetting: We rigorously vet investors to ensure they are accredited, Income focused investors, excited about the opportunity to invest in an off-market small business. This sets the stage for a effective collaboration.
Nuances of confidentiality: Acquisitions, with their confidentiality clauses cannot be broadcasted across the internet when looking for funding due to NDA clauses requiring discretion. We understand this limitation which is why you won’t see any of our deals openly displayed on the website. In-fact no investor ever knows the identity of the company you are acquiring until they have learned everything about the deal, agreed to the term sheet and signed an NDA mandating their discretion. This process is highly vetted and one we take very seriously to protect all involved.
Comprehensive Support: Our support extends beyond introductions. We assist in creating compelling landing pages, scripting impactful videos, developing your pitch deck and refining webinar presentations. Given the nature of our offering, we also connect you with experienced securities lawyers that are critical in helping you setup the investment and all of your back-end legal documents, so you feel confident in your offering.
Informed Conversations: Reports on your acquisition are provided to investors, ensuring they are primed with 90% of the information needed. When the conversation starts, getting to know the investor and them getting to know you is the primary focus. This setup helps aide in closing and creates a great starting point for an on-going relationship.
Funds Management: Once funded, our platform ensures seamless fund management, with ongoing support throughout the investment holding period.
Ready to Transform Your Acquisition Journey?
Your success is our mission, and we're here to make every step of your acquisition journey a triumph.
Fill out the form, and let's embark on a journey where success is not just a destination but a shared accomplishment.