The Investment Process
At Quantum, we welcome and encourage entrepreneurs, accountants, bankers, attorneys, business brokers and consultants to contact us regarding opportunities that meet our Investment requirements.
- A formal business plan is recommended and should include the following information:
- Detailed description of the industry, business, competition and marketing strategy
- Detailed biographies of the management team
- Historical financial statements for the most recent three years, if applicable
- Projected income statements, balance sheets and cash flow requirements for the next three years
- A summary of the capital required and the use of proceeds We are sensitive to the timeliness of each investment opportunity.
- Quantum Capital Partners will review your plan within 5-10 business days and respond to whether or not we are interested in your business.
- Due Diligence: If we determine that we are interested in investing in your company we will begin a due diligence phase (30 – 60 days) this may include;
- Financial due diligence (i.e. audited financial statements, sales receipts, purchase orders, and tax filings)
- Market research
- Other due diligence (intellectually property, etc.)
- Letter of Intent: If due diligence is completed successfully then we will provide a detailed Letter of Intent, this may include;
- Offer terms (price, valuation, etc.)
- Investor rights (board seats/observation, capital expenditures, strategic, etc.)
- Outline of Operating Agreement and Purchase Agreement
- Corporate Documents: When Letter of Intent is accepted, counsel will begin drafting corporate documents to formalize new partnership. This process takes 30-60 days
- Operating Agreement
- Purchase Agreement
- Advisory Agreement
Our goal is to respond quickly regarding our level of interest. All investment and company information will remain confidential.
Quantum Funding Requirements
Quantum invests in companies that can demonstrate the following characteristics:
Experienced Management
The most important requirement is the quality and integrity of management. We seek to work with entrepreneurs who have a significant equity position and have experience in their industry segment.
Growing Industry
We like to invest in companies that have current revenue, profitable (or at least break-even) operations and a proven economic model that can be expanded at a rate of at least 25% per year.
Geographical Focus
We focus our investment reviews on companies that are headquartered in the Southeastern United States.