Outsourced Corporate Development

Deal Sourcing Services for Lower Middle-Market Investment Companies

Given our exclusive focus on working with companies in the lower middle market, we have developed a strong understanding of what companies will make suitable bolt-on acquisitions and have fine-tuned our process of reaching out and opening discussions with them.

Our award-winning team is largely comprised of former small business owners, public accountants, and middle-market investment bankers. Our clients have trusted us to sell over $500M in small and mid-sized businesses.

What Business Buyers Look For in Investment Opportunities

At Raincatcher, we’ve opted for a fee structure that primarily compensates us for the successful sale of our client’s business. We also structure our fees so that our compensation is in line with our client’s best interest. We utilize investment banking caliber data room software, CRM, processes, and skills for our main street business brokerage clients.

OUR CORPORATE DEVELOPMENT PROCESS

We offer 30-minute complimentary consultations to qualifying companies who have the capital availability and are looking to grow through acquisition. Should we elect to work together, we kick-off our process by helping you form a mandate of what Industry(s), revenue ranges, locations, and situations make sense for you to target.

An example of this would be a marketing services company currently doing $30M/yr. in revenue that is looking to acquire/bolt-on 2-3 smaller marketing companies per year. Their targets must be a US based marketing agency, have $3m+ in revenue, a client mix that pays $5k/mo.+ in fees, is growing and have an owner that is willing to stay in place for at least 6 months.

 

TARGET LIST DEVELOPMENT AND OUTREACH

Once this mandate has been developed, we will scrape multiple databases to develop outreach lists, make contact with the ownership at the potential target firms, request financial statements, and open up a dialogue with the owners about their career plans and the potential of selling.

CORPORATE DEVELOPMENT FEE STRUCTURE

Scope of work varies greatly for our corporate development process, we will typically custom quote a monthly retainer fee. Additionally, if our scope of work includes data gathering, strategic advice, and negotiation of purchase price and terms, we will charge a percentage of the purchase price as well. On occasion, we may roll these fees into equity if it makes sense for all parties.

What Our Clients Have to Say

Request A Consultation

If your business is currently generating over $2M in annual revenue and entertaining selling your business in the coming years, we welcome the opportunity to get introduced to discuss our business exit planning and advisory services.