A disciplined direct process
A business acquisition develops in stages. The sequence below explains what may happen when an owner or intermediary brings Duck Creek Capital an opportunity; it is not a promise of timing, an offer, or a commitment to close.
Initial conversation
An owner or intermediary shares a non-confidential overview of the company, including what it does, where it operates, approximate revenue and EBITDA, ownership goals, and potential timing. This is an opportunity to clarify expectations and determine whether additional discussion is worthwhile.
High-level fit review
Duck Creek compares the opportunity with its published criteria: an established U.S. business, $5 million to $50 million in revenue, $1 million to $7 million in EBITDA, consistent profitability, recurring or repeat revenue, durable cash flow, and a strong market position. Meeting those guideposts does not guarantee further review.
Confidentiality and preliminary information
If there is initial alignment, the parties may establish appropriate confidentiality arrangements and exchange selected financial and operating information. Sensitive information should be staged rather than sent through the initial website form.
Evaluation and preliminary terms
Duck Creek may evaluate normalized earnings, cash flow, customers, management, operations, growth opportunities, risks, transaction structure, and transition considerations. If appropriate, the parties may discuss a preliminary indication of interest. No indication is binding unless a definitive agreement expressly says otherwise.
Letter of intent
If the parties align on major economic and process terms, they may consider a letter of intent. A letter of intent can address price and structure, working capital, diligence, financing, exclusivity, transition, and other matters. Binding and non-binding provisions vary, so each party should obtain legal advice.
Confirmatory due diligence
Diligence may cover financial, tax, legal, commercial, customer, operational, human resources, information technology, cybersecurity, regulatory, insurance, and other matters relevant to the company. Findings can affect value, structure, representations, conditions, or the decision to proceed.
Financing and definitive documents
A potential acquisition may require financing, approvals, and negotiated purchase and ancillary agreements. The parties and their advisors work through allocation of risk, closing conditions, transition obligations, and other transaction-specific terms.
Closing and transition
If all conditions are satisfied and the parties sign and close definitive agreements, ownership transfers as specified. Transition arrangements may include training, consulting, employment, communications, or other support, but the appropriate plan depends on the business and negotiated terms.
What can help the process move efficiently?
- Accurate financial statements and tax returns that reconcile.
- A clear explanation of proposed add-backs and one-time items.
- Customer, supplier, employee, contract, and working-capital information organized by stage.
- Prompt identification of legal, regulatory, operational, or ownership issues.
- A realistic view of owner involvement and transition needs.
- Qualified legal, tax, accounting, and financial advisors engaged at the appropriate time.
Learn before you begin
Owners can prepare with the guides to preparing a business for sale, documents buyers may request, business-sale due diligence, letters of intent, and seller financing.
See whether your business fits
Start with a high-level, non-confidential overview. Duck Creek Capital will consider the information against its acquisition criteria and determine whether a direct conversation makes sense.