Services for Angel Investors
and Business Buyers
Are you an angel investor? Are you intrigued by the idea of becoming an angel investor? Are you considering buying an existing business? If your answer is "yes" to any of these questions, then read on!
- Increase Deal Flow --- We help angel investors and business buyers find more, and better, investment opportunities
- Due Diligence --- We do a deep dive into the most promising companies to uncover hidden problems and opportunities
- Coaching & Training --- If you are new to the game of angel investing we can teach you the ropes.
Increase Deal Flow
If you are passively or actively looking for new and interesting investment opportunities, we can dramatically increase your deal flow. We uncover literally thousands of start-ups and small businesses, and hundreds of middle market businesses, with real growth potential each year.
The first step is for us to sit down together and create an ideal investment opportunity profile for you. Variables include industry verticals, revenue potential, historical revenue, number of employees, geographic location, etc. Once we understand what you are looking for we can reach out to our extensive network of business owners and entrepreneurs to find the opportunities that meet your profile. Whenever we find a candidate, we’ll do some preliminary due diligence, and if all signs are GO, we’ll pass the candidate’s information on to you (without revealing your name or contact information to the business owner) so you can make a decision without any infringement on your privacy.
Due Diligence: What you don’t know WILL hurt you
If you are planning to buy or invest in a company with an estimated value (or potential) of at least $500,000, Ground Floor Partners' Due Diligence Service may be the right choice for you.
We'll evaluate the opportunity, risks, limitations, and market potential based on in-depth interviews with company management, owners, employees, customers and partners. We'll supplement our interviews with a thorough analysis of internal documents, third party industry articles and our own independent research and analysis.
Our due diligence process goes far beyond the usual straightforward accounting/financial analysis prepared by an accountant. Small businesses and start-ups are notorious for incomplete or inaccurate financial statements. The real question isn't whether or not the target company has been performing well in the past; it's much more important to understand what the core strengths, weaknesses, opportunities and threats are for the future. That is where our approach excels.
Due Diligence Questions
During our due diligence investigation we will cover literally dozens of issues. Here is a small sample of the kinds of questions we typically ask:
- Are there any outstanding, pending, or previously settled lawsuits against the company or members of the senior management team?
- Does the company have significant debt?
- Is there major infighting between members of the senior management team?
- If the company has a strong top and bottom line now, is this sustainable or is it just a short term phenomenon?
- Has the company kept up to date on all federal, state, and local taxes?
- If the company has a business plan in place now, is the plan based on fact or fantasy?
- What do customers, partners, and industry experts say about the company?
- Are there any emerging competitors who could quickly knock the company out of the marketplace?
- Are there significant growth opportunities that the current management team may have missed?
Due Diligence Deliverables
At the conclusion of the due diligence engagement, you will receive:
- A detailed report of our Key Findings, covering important aspects of the business opportunity: ownership structure, management team and staffing, history, business model, market analysis, sales and marketing, operations and profitability, tangible and intangible assets, competition, key issues, and opportunities for growth.
- Recommendations on whether and how to proceed, how best to address key issues that we have identified, and what approach to take in making or evaluating an offer.
- Valuation Analysis based on discounted cash flow of projected future earnings, and comparisons with peer group and industry benchmarks.
- SWOT Analysis covering Strengths and Weaknesses of this company within the context of Opportunities and Threats that it faces.
- Risk Analysis covering the full range of alternative outcomes that could impact future returns on this investment.
We know that time is of the essence when there's a deal on the table. So, you can count on us to accelerate the process as necessary to come to a fast but accurate result. We'll also give you preliminary recommendations whenever possible, even as work continues.
Angel Investor Coaching
Have you ever thought “wouldn’t it be nice to make money by investing in high growth start-ups”? Everybody has heard the stories about people who took a chance on a high tech start-up with a $100,000 investment and turned it into $2,000,000 within 4 years. Many of these stories are real. The problem is that for every investor who made it big, there are 100 investors who barely broke even, or lost their shirt. Why do some angel investors succeed where others fail? What should you avoid, and what should you double-down on? Once you have decided on a suitable investment, what is the best way to work with the founders so you keep your eye on the ball but avoid becoming a backseat driver?
We offer private coaching to individuals or small groups of prospective angel investors so you can learn how to minimize your chance of failure and maximize your chance of success.