Private equity is fundamentally focused on profitability, frequently prioritizing cost optimization—or, more bluntly, cost-cutting—as a primary strategy. Upon acquiring a business, these firms set a clear endpoint, steering you and your team towards accelerated growth and reduced expenditures. In this model, your company might just be one among many in their portfolio, subject to a stringent 3-5 year plan aimed at enhancing the business for a subsequent sale.

While this approach can be effective under certain circumstances, it often does not align well with the needs and nuances of smaller companies. This misalignment is a primary reason why traditional private equity firms usually steer clear of operating in the small business sector.

Strategic buyers, often your direct competitors, tend to operate at a slower pace due to the extensive internal reviews and approvals required before finalizing a deal. Entrusting your company's sensitive data to a rival can also pose significant challenges, adding a layer of complexity to negotiations.

Post-acquisition, the approach adopted by strategic buyers can mirror that of private equity firms, focusing on rapid integration and optimization. This transition may lead to significant changes within the team and could potentially dilute the unique identity that defines your company.

You may have been contacted by a "Search Fund" which is essentially an individual who has backing to search for and acquire an individual business. These individuals are usually former employees of big companies and are looking to escape the corporate hierarchy and run their own business.

The issue is that they likely have little to no experience running a small business and have a limited amount of capital to draw from. Some may even be self-funding the deal and will be looking for loans and debt in order to finance the deal.

These buyers are unpredictable, have a challenging path to closing a deal, and more often than not, are tire kickers.

Main Street Legacy Partners was established with a singular mission: to acquire and nurture outstanding Tax, Accounting, and Financial services businesses. Our foundation is built upon leveraging the extensive experience we've gained in private equity, venture capital, and corporate mergers and acquisitions (M&A) and combining that with Tax & Accounting industry experts to offer a superior capital and operating solution for boutique financial services firms.

We are supported by committed capital from a cohort of seasoned investors and operator. Our strategy is long-term, affording us the opportunity to invest in people and cultivate business growth comprehensively. Our goal is to collaborate closely with you to develop a plan that aligns with your aspirations and ensures the continuity of your business's legacy.

If you’re contemplating the future of your business but are not yet ready to step away, we see this as an ideal opportunity. Let's explore partnership avenues to enhance your business, be it through acquisitions, team expansion, or other growth strategies. We are here to assist you in navigating these challenges, ensuring a seamless transition or expansion that respects the legacy of your business.

We start with an introductory phone call or two to discuss your business at a high level, backgrounds, and motivations. This enables us to determine whether it’s worth moving forward. We’re in-person business type of people, so we’re happy to make an effort to travel in order to get to know you and your business better.

If after the confidential call, we determine that there might be a mutual fit, we execute an NDA for our mutual protection, and request a short list of documents. This typically includes financial statements over the past few years and some operating data/metrics.

After completing our initial diligence, you can expect an Indication of Interest or IOI. This is a one-page letter that will provide the broad outline of a potential deal, which includes price range and other key conditions of the deal. This IOI is mutually non-binding, as there is still room for negotiation on terms. It serves as an indicator that we’re generally aligned on the big items such as price, deal structure etc.

If the IOI is agreeable to both parties, it will be formalized into a Letter of Intent or LOI. This is a legally binding document that expands on all keys points mentioned in the IOI and also addresses other key considerations for the deal.

This is the sprint to the finish. Once the LOI is signed, we’re drafting legal documents, doing a deep dive into the business, and having an accounting firm reviewing the books, all to better understand all aspects of your business.

Once confirmatory diligence is complete and all the legal documents are signed we’re all set to close the transaction and begin working towards transitioning the business. Each transition plan is different and in many cases, the owners/sellers might be staying on to continue to work with us on operating the business. This is where the real work begins!