Arch Difference Print E-mail

Arch Equity Partners differs from the many private equity firms that attempt to create value through financial engineering. Arch does not over leverage companies with unsupportable debt structures instead including equity investments within the capital structure of each portfolio company. Arch  understands that creating long-term value only comes through operational improvements, professional management practices, and profitable business growth.

The companies Arch seek have achieved success because of their proven ability to ‘do’ something that the marketplace values. Adding to that success Arch provides the scale that middle market companies may lack to attract build out the management team required to exploit the significant growth and profit potential.

Exceptionally Efficient Investment Process
Every successful business leader avoids wasting time. Arch’s approach is exceptionally efficient and seeks to meet two deadlines:

  • Advise of interest in the company within thirty days
  • Close within 60 days from the execution of a Letter of Intent

Three Primary Steps:

Initial Review & Evaluation Primary Business Review & Indication of Interest Arch Equity Partners & Financing Due Diligence / Closing Process

2-6 weeks:

  • Need 3-5 years financial statements
  • Financial projections optional
  • Current Accounts Receivable and Accounts Payable agings
  • Key contracts or customer purchase orders

2-4 weeks:

  • Additional, targeted information to be provided as necessary
  • Conduct due diligence necessary to get capital sources to provide indications of interest

6-8 weeks:

  • Draft all documents
  • Lender(s) conduct due diligence; negotiate terms with lenders(s)
  • Negotiate contract terms and post-closing issues
  • Arch Equity Partners finalizes all corporate issues (insurance, legal structure for investors, employee issues, etc.)

Arch Equity Partners will provide initial thoughts on valuation and preliminary structure.

Will also conduct meetings with investors and other capital sources (banks, etc.).

Arch Equity Partners will provide LOI or depending upon closing time frame go right to contract.

If offer accepted, start documentation and formal due diligence.

Generally this is stage where company tells employee team about process; Management team and Arch Equity Partners start working together.

Targeted closing date set in LOI .

 

 
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