Clear answers to how NeoNox structures, values, and supports your business before, during, and after the deal.
How will NeoNox value my business?
NeoNox primarily uses EBITDA multiples adjusted for industry, growth and risk. We work with you to normalise earnings and may engage a quality of earnings provider. Revenue multiples are used for pre profit or SaaS businesses.
How long does the process take?
Once we receive your financials, we can issue a term sheet within 2 weeks. Closing can occur in 30–90 days depending on tier and diligence requirements.
Do I have to sell control?
No. Our tiers range from 1 % to 100 %. You choose your comfort level. Lower tiers maintain your control; higher tiers transfer control as part of the value exchange.
When do management fees begin?
Fees only activate when your company crosses agreed performance thresholds or when you request specific Back Office projects. Until then, you receive guidance at no cost.
What if my business isn’t profitable yet?
We evaluate businesses holistically. High growth companies may command revenue multiples; however, management fees will still be tied to objective triggers.
Can I upgrade or downgrade tiers later?
Yes. If your circumstances change (e.g., you need more liquidity), we can transact additional equity. Terms will be based on then current valuation and performance.
Do I need to stay on post close?
It’s optional. Lifestyle owners can transition out over 1–3 years; if you have a strong team, we accommodate quicker exits. If no team exists, we may ask you to stay 3–5 years to ensure continuity (subject to NeoNox discretion).
What is seller financing?
Seller financing means you lend part of the purchase price to NeoNox, earning interest. This reduces cash at close but increases total proceeds and qualifies you for added incentives.
How are earn outs structured?
Earn outs are tied to EBITDA growth or revenue milestones. They typically range from 10–40 % of the purchase price and are paid over 2–4 years.
What happens if performance triggers aren’t met?
If your company fails to hit agreed triggers, management fees remain on holiday and earn out payments adjust accordingly. We prefer to align incentives rather than penalise underperformance.
How does NeoNox support bolt on acquisitions?
All tiers include some level of M&A support, with intensity increasing at higher tiers. We can source targets, conduct diligence and integrate them using our Back Office.
Are your offers contingent on financing?
No. NeoNox is a micro PE firm with committed capital. We can provide bank statements or pre approval letters to prove certainty of funds.
What is included in your Back Office?
Services include accounting/close, FP&A, treasury/banking support, HR/talent, IT/cybersecurity, legal/compliance, procurement, sales ops, marketing, pricing and M&A integration. See Section 4 for details.
How do you handle confidentiality?
We sign NDAs and use secure data rooms. Our due diligence team is small and professional. We only share information with advisors who need to know.
Do you invest in distressed companies?
Yes. For turnaround situations, we can provide bridge financing post diligence and support operational restructuring. We understand covenant pressure and liquidity constraints.
What are typical rep/warranty provisions?
Indemnity caps range from 10 % (Tier 1) to 30 % (Tier 5) of purchase price with survival periods of 12–36 months. We may obtain representation & warranty insurance for larger deals.
Can I keep family ownership?
Minority tiers allow you to retain board influence while taking liquidity. You decide how much to sell; we only invest a minimum of 10 % for companies valued <$100 M (as per the user’s note).
Do you help with tax or estate planning?
We can connect you with licensed professionals. In higher tiers, we may subsidise up to $25 k of tax/estate planning fees as a seller financing incentive.
How do you measure success after the deal?
We track revenue growth, EBITDA margin improvement, working capital efficiency, employee engagement and Net Promoter Score (NPS). Our own success is linked to your company’s performance and eventual exit.
Why choose NeoNox over other buyers?
NeoNox offers speed (due to predefined tiers), flexibility (1–100 %), transparency (published rights and fees), and operational muscle (Back Office). We don’t overburden sellers with bureaucracy and aim to build trust.
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