Totality Ventures understands that most entrepreneurs have never been through anything so complex, emotional taxing, and stressful as a Merger or Acquisition process, so we have laid out in a simple format the major milestone steps from initial conversation to closing the transaction. Our due diligence team will work with you every step of the way and answer any questions you may have and coach you until we close the transaction.
High Level Call:
The first step is to have a high level phone call with one of our Directors and allow the Totality team to collect some: customer, pricing, product, financial, and ideal transaction information.
NDA / Collect Financials:
The second step is to execute a NDA (Non-Disclosure Agreement) with Totality, and collect financials. For this stage high level financials, customer pricing matrix, customer retention, and customer files are all that we need.
The Totality team will use all of the collected information to formulate a projected valuation range based on the information provided. Totality can present a simple term sheet with a high level of certainty of delivering an LOI (Letter of Intent) to the Founders & CEO within approximately one month from one of our capital partners.
High Level Data Request:
Once Totality presents valuation expectations, the due diligence team will need to collect additional information and begin building out a data room.
See the High Level data Request Here:
Intro Management Call:
The next step is Introductory Management Calls with interested Capital Partners.
These calls will be ~60 minuets with the following agenda:
- Intro (5 mins)
- Business Overview (15 mins)
- Problem in marketplace / Software's solution (20 mins)
- Q&A (15 mins)
- Wrap up / Next Steps (5 mins)
There will most likely be additional data requests prompted by these calls.
We try to limit this to 3-6 capital partners.
Deep Dive Management Call:
This call will go more in depth with the most interested capital partners.
Typically this call has three components:
- Product Demo
- Deep Discussion on Business Operations
- Go to market strategy / future growth
These three components can be done together or broken into 2-3 calls. The total time per capital partner is around 60-90 minuets.
Only the top capital partners will have a Deep Dive Management Call, so we will limit this to around 3.
Follow up Data Requests/Build Data Room:
After having a deep dive management call the interested financial partners will have additional data requests to formulate their offer.
Below is a sample list of what documents will be required to receive a formal offer, but often times there will be additional data requests based on the individual company.
Formal Offer: LOI/IOI
There are a few different types of formal offers: LOI (Letter of Intent), IOI (Indication of Interest), and Term Sheet; these are in order by level of specificity and details of the proposed transaction.
We work with Founders & CEOs to find mutually acceptable terms to both our Capital Partners and what fits the needs of the company.
We pride ourselves of having an 85% LOI close rate.
Diligence Kick-Off Call:
After signing the LOI, there will be a Due-Diligence Kick-Off Call, and a diligence timeline provided to the seller in addition to a more comprehensive Due Diligence Data Request List.
This list will be all-encompassing of the business's operations, legal, financial/accounting, customer, human resources, technology, and sales information.
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