EBITDA between $400k and $1.5 million
Recurring customers or well-established sales channels
Attractive unit economics
Initial Conversation – Initial call with owner and myself to get to know each other and start to explore whether there is a potential fit.
Further Review - A deeper analysis of the deal that confirms interest and helps suggest an appropriate valuation and deal structure. This can be done after signing an NDA and requires further materials.
IOI Issued – Indication of interest is issued, facilitating deal structure conversations with the seller.
LOI Issued – Letter of intent is issued, outlining the key terms applicable to the deal offer.
Due Diligence – Once the LOI is signed, start completing multiple types of due diligence and ironing out the purchase agreement language.
Closing – Finalized purchase agreement is signed.
Transition – Focus on earning trust of existing employees and maintaining operations. My preference is for the seller to serve in a transition capacity with a diminishing role over time.
Avodah is a Hebrew word that means work, worship, and service all in one word that speaks to an integration between these concepts. In providing valuable goods and services, businesses through the dedicated work of many individuals can be a powerful way to serve one another. And for me, I see my work when done well as an act of worship to God. Thus, I seek to work with excellence in a manner that serves others before myself.
Invest, meanwhile, has the obvious connotation of a financial investment, which is a key piece of my current process: seeking to purchase a business from an existing owner. Beyond this, however, invest refers more broadly to my desire to pursue active involvement in the form of relationships, time, and effort. In contrast to a singular, one-time investment that becomes passive over time, my hope is that the choice of the word invest conveys my desire to be an active leader for the long-term.