We acquire
businesses that have...

Some Great People In
A Great Business

Trailing Annual EBITDA
Less Than $5.0 Million

History of Consistent and
Stable Cash Flows

Long Tenured
Business (20+ Years)

Business is Easy to
Understand

Low Customer/Vendor
Concentration

Deal process

Navigating the Acquisition Journey

We follow a proven buy-side methodology , which provides a seller centric roadmap detailing each milestone step from preliminary assessment to seamless post-acquisition transition.

Step 1

Preliminary Assessment

Our journey together begins with a preliminary assessment. At this juncture, we familiarize ourselves with your company's overview and culture, its market potential, and its value proposition. This gives both sides a foundational understanding, enabling us to decide the viability of moving forward together.

Step 2

LOI (Letter of Intent)

Should our preliminary assessment prove promising, we then proceed to draft a Letter of Intent (LOI). This non-binding document illustrates our genuine interest in your business, its fair valuation and outlines the general terms of the acquisition, setting the stage for more detailed due diligence.

Step 3

Due Diligence

The heart of the acquisition process resides in due diligence. Enabled with the mutual insights from the LOI, we engage in a thorough examination of your company’s various facets, from financial to operational and people. This step helps ensure that we understand the nuances of your business, allowing us to mitigate any surprises.

Step 4

Closing

Once due diligence is completed and concerns addressed, we move to finalize the deal. All terms, conditions, and pricing mechanisms are negotiated in detail, leading to the signing of a Purchase Agreement and moving the acquisition forward.

Step 5

Transition

Post-closure, our commitment to a smooth transition takes precedence. This phase encompasses executing post-deal clauses, transferring assets, and undertaking any obligations stipulated in the Purchase Agreement. Furthermore, we focus on transitioning the business, ensuring operational synergies and the overall success of the acquisition.

FAQ

Key questions we are asked
at the beginning of deals

What is the valuation process for my company?

The valuation process involves a detailed analysis of your company's financials, assets, liabilities, growth potential, market position, and industry comparables. Valuation methods such as market multiples, and asset-based valuation may be used to determine a fair price for the company.

How will the purchase price be structured?

The purchase price can be structured in various ways, including cash, stock, or a combination of both. Earnouts, where a portion of the price is contingent on the company's future performance is also a fairly standard option. The structure will ultimately depend on discussion with Humble and both parties preferences for risk and liquidity.

What role will I have in the merged or acquired company?

A sellers role post-acquisition can vary. It may involve continuing in one’s current leadership position, taking on a new role within the combined company if one exists, or providing transitional support during the integration process. This will be discussed and negotiated with Humble as part of the deal.

How will my employees be affected by the M&A?

At Humble, we recognize the value of retaining key talent. As such, clear communication and a well-structured transition plan are essential to minimize disruption and maintain morale.

What are the terms of the deal and the timeline for completion?

The terms of the deal include not only the purchase price but also conditions, representations, warranties, and indemnities. The timeline varies but typically involves a LOI followed by due diligence, negotiations and closing procedures. Being self funded enables Humble to set a realistic timeline and addresses potential roadblocks upfront to help ensure a smoother process.