SCOTT
CAPITAL
CONSULTING
a Limited Liability Corporation
Services.
Overview
Created to help investors make informed decisions about the deployment of investment capital, Scott Capital Consulting provides due diligence on franchises being acquired by investors and entrepreneurs. We represent buyers. We are not hired or paid by the seller/franchisor. Scott Capital Consulting performs a thorough, independent evaluation of the opportunity being sold by the seller/franchisor.
Buying a Franchise:
Due Diligence for
Franchise Acquisitions
With more than 750,000 franchises in the United States in 2024, investors are more likely to buy a franchise than any other small business model.
Title 16 of the Code of Federal Regulations Section 436, better known as the Federal Franchise Rule, which is published by the Federal Trade Commission, requires franchisors to disclose twenty-three (23) items of information to provide prospective franchisees with enough information to know whether a viable business opportunity exists. It also defines acts or practices that are unfair or deceptive in the franchise industry in the United States.
Scott Capital Consulting completes a comprehensive review to determine the legal and financial viability of the proposed franchise while providing the data necessary to stress-test the investor's conclusions regarding the acquisition. We turn legal and financial data into information to clarify whether the franchise you are targeting can help you achieve your investment goals and objectives.
Buying a Small Business:
Due Diligence for
Small & Middle Market
Business Acquisitions
When you buy a franchise, you're buying a business that comes with a lot of guidance and a little bit of control. When you buy a business that is not a franchise, you're buying a company that comes with total control and no guidance.
Asymmetrical information is a significant challenge for investors buying small or middle market businesses that are not franchises because there's no law requiring the seller to provide critical information on whether the business is viable. The seller has all the information, and the buyer has none. Until the buyer gets more data which could be turned into information, he or she won't know whether they are buying a viable business or someone else's problems. That's where we come in.
Scott Capital Consulting is available to perform legal and financial due diligence on small and middle market businesses being acquired by private equity firms and angel investors. Because we are in the business of shining a brilliant light on the latent risks associated with buying small and middle market companies, we like to say we're in the "business of brilliance."