Q: What exactly is a “majority buyout”?
A majority buyout is a transaction where a business owner sells a majority (more than 50% and up to 100%) of his or her company.
Q: Who is the ideal business owner for a North River Group majority buyout?
Q: Who is not an ideal business owner for a North River Group majority buyout?
Q: What makes North River Group a unique buyer?
Q: If you are not operationally focused, what decisions are you involved in?
Q: How do you compensate CEOs?
We believe in as much alignment of interests with the CEO. As such, CEO compensation structure is simple: base salary + bonus:
Q: What are my other options for liquidity besides selling to a group like North River?
Q: Why is North River Group okay investing over a long time horizon?
Simply stated, finding good management teams running good companies is an extremely hard task. When we find such a combination, we prefer to invest over the long term.
Q: What is the typical timeline for making an investment?
The deal terms are set forth in a Letter of Intent. Once this document is agreed upon by the business owner and North River Group, closing typically takes place at the latest of 3 months from signing. During this time, business due diligence takes place. This entails an outside accounting firm performing a quality of earnings analysis on the company financials, customer/vendor visits as appropriate, background checks, etc. Finally, legal documents are drafted prior to closing.