AMIT SARAN
Your business.
Next chapter.
A considered way forward.
I’m looking for one business to acquire and lead for the long term.
Here’s how we can explore whether we’re a good fit.
AMIT SARAN
I’m looking for one business to acquire and lead for the long term.
Here’s how we can explore whether we’re a good fit.
A PERSONAL COMMITMENT
My career began at sea, where accountability was immediate and the stakes were high. Over the following 15 years, I worked across consulting, consumer goods, telecoms and technology, and co-founded two startups. Now I’m looking for a solid business and an owner who wants to see what they’ve built continue to thrive.
We will begin with a 15-30 minute phone call to make an initial assessment of fit. We’ll aim to cover the following in our first call:
- Your readiness/willingness to sell
- The size of the business (turnover and profit)
- The revenue model
- My approach and next steps
If we think there is a potential mutual fit after this first discussion, we will proceed to NDA and financials.
To ensure confidentiality and give you enough comfort to share information with me, I will send you a signed NDA along with a request for the following:
- Income statements for the past 3-5 years
- Balance sheets for the past 3-5 yearsIf readily available, please send monthly statements in Excel format.
If these are not readily available, please send what you have ready now, and we can work on the format later.After reviewing the financials and perhaps 1-2 more phone calls with you, I will aim to submit an Expression of Interest (EOI).
The Expression of Interest (EOI) is my first formal offer to purchase your company. It will indicate not only purchase price, but also the proposed structure of the deal. In the EOI you can expect to see the following:
- Purchase price
- Portion, timing, and terms of any deferred payment (e.g. escrow, vendor financing, earnout)
- Key assumptions upon which I will make the offer
This offer is not binding for either you or me, but it gives us an opportunity to discuss a potential sale in concrete terms before investing more time in the process.
Upon acceptance of the EOI, I will begin preliminary due diligence, during which I will attempt to understand the opportunity, along with associated risks, well enough to proceed to a Heads of Agreement (HOA). Preliminary diligence will likely include the following:
- An in-person visit to the company, enabling us to meet face-to-face if we have not already done so
- A deeper analysis of monthly financials for at least the past 5 years
- A review of revenue by customer over the past 5 years
- A review of any regulatory constraints on the business
- A review of any other risks or opportunities that could materially impact the deal
Upon favourable completion of the preliminary diligence, we will proceed to signing a Heads of Agreement (HOA).
The Heads of Agreement (HOA) is a more formal offer to purchase the business, and it comes with greater certainty of completing the acquisition at the price and terms outlined in the agreement.
Key differences between the EOI and the HOA include the following:
- The HOA will include a binding exclusivity period of at least 90 days, during which you are restricted from engaging with other potential buyers. This gives me the comfort to spend time and money on the deal.
- The HOA will likely include a working capital target/peg.
- The HOA will specify whether I am buying the shares or the assets of the business.
Depending on what I learn in preliminary diligence, price and terms may differ from the EOI.
Formal due diligence involves an even deeper dive into the business and associated risks and opportunities. The goal of this effort is to give enough comfort to me and my backers to invest in the acquisition, and it helps to avoid any post-acquisition surprises, thereby enabling a smooth transition and minimal conflict.
Due diligence can take several months and can be quite costly; I expect to spend in excess of $100,000 on diligence costs. You can expect to invest time, money, and energy into the process as well, which is why you and I should be as aligned as possible prior to signing the HOA and commencing due diligence.
Due diligence will include the following:
- Financial review by third-party accounting firmLegal review by third-party law firm (e.g. contracts, liabilities, IP)
- Insurance, regulatory, and technology review by third-party consultants, as appropriateAsset review (e.g. IP, equipment, property, management/HR)
- Commercial review (e.g. competitors, industry, pricing)Culture review
At a first glance, the above can feel a bit overwhelming, but rest assured that we will take the process in pieces to keep it manageable. I completely understand that you still have a business to run!It’s important to note that through this process, I don’t expect perfection - every company has gaps and risks. What’s important is that my backers and I can plan for those risks, and that as little as possible takes us by surprise post-acquisition.
Timing depends on financing, information availability and deal complexity.
After completion: typically up to 3–6 months of as-needed transition support, by agreement.
16 - 24 weeks
Indicative transaction timeframe
My career started somewhere most people wouldn’t expect. As one of the youngest officers selected for a VLCC vessel delivery, I was responsible for $200M in cargo across open ocean. When the outcome is entirely on you, you learn quickly what accountability actually means.What followed was 15 years building and scaling businesses across consulting (EY, Accenture, BCG), consumer goods, telecoms, and technology.
I led strategic programs across six APAC markets at Uber, co-developed a 10-year growth strategy at Fonterra, and co-founded two startups. I know what it takes to scale something. I also know what it costs when you get it wrong.Now I’m working with SMEVentures to find one business to lead for the long term. That process takes time, typically 12 to 24 months of careful searching, and I think that’s right. I’m looking for a business with a solid history and an owner who wants to see what they’ve built continue to thrive.
SMEVentures helps people like me achieve my goal of acquiring and running a business of my own. They have done this many times before and come with proven processes. I have partnered with them to raise funding, identify an opportunity, complete the acquisition, and maximise my success as CEO.
As is standard for acquisitions of this type, I plan to fund the acquisition with a combination of investor equity capital and bank debt.My equity investors are an impressive group of successful entrepreneurs, family offices, venture capitalists, and consultants.
Your business keeps operating. I’m not looking to strip it back or merge it into something else. I want to step in as CEO, keep the team that makes it work, and build on what you’ve already created. SMEVentures’ track record backs this up: every business they’ve acquired is still run by the person who bought it.