OUR DEAL PROCESS

Committed to helping our partners at every step of the way
Industries We Serve

Our 6 step Deal process

Investment Sourcing

Meeting with the Managing Partner

Term Sheet

Due Diligence

Negotiation

Closing and Funding

Investment Sourcing

To start off, our investment sourcing team generates a list of target practices through comprehensive research of the target markets. With this, one of our associates will reach out to owners of target practices to provide an introduction on Dwek Capital and the services that we offer. This is usually conducted through a brief phone call or email. When a practice owner is interested in further discussions, their contact information will be forwarded to one of our managing partners.

Meeting with the managing partner

At this point, one of our managing partners will follow-up with the prospective seller to give a rundown of the opportunities currently available and answer any questions that the practice owner might have. The managing partner will also ask a series of questions about the practice’s financial shape to gain a better understanding of the practice and its growth potential. If the practice meets our investment criteria, we ask the practice owners to send us more detailed financial information so that our analysts can determine a valuation of the practice.

Term sheet

After reviewing the practice’s financials, our managing partners will forward a term sheet, including the diligence process, a description of timing, and an exclusivity period. This will outline significant terms and conditions of the potential business agreement and establish a basis for future negotiation between the practice owner and our partners. To help both practice owners and partners move forward with ease, we execute several agreements, including a non-disclosure agreement (NDA) and a letter of intent (LOI). The NDA ensures that both parties maintain confidentiality of all information exchanged, and the LOI declares preliminary commitments between the parties and outlines the terms of the prospective deal.

Due diligence

We work with lawyers, accountants, and advisors to help guide us through the due diligence process. With their combined expertise, we validate the operational and financial information provided by practice owners in order to determine a reasonable valuation for our partners and prospective practice owners. We continue to speak with the practice owners, as well as customers and vendors of the practice to help us evaluate the practice even further. Depending on the size of the practice, there may be several rounds of due diligence before the deal closes.

Negotiation

During the negotiation process, we discuss the long-term objectives of both the practice owners and partners. Based on this, we facilitate discussions on the deal structure, purchase price, and strategic goals during the transition process as outlined in the term sheet. There may be several rounds of negotiations before an agreement is reached where both parties come out of the deal satisfied. Depending on the nature of the negotiation and agreement, this process may take several months to complete.

Closing and Funding

Once all the necessary documents are prepared and conditions of the transaction are fulfilled, we release the sale proceeds to the practice owner.