We help founders and business owners achieve successful exits.

Working with founders and small business owners we look to find win-win valuations and deal structures that enable sellers to achieve above-market valuations and exits, often while retaining equity for additional upside return as we continue to grow and expand their business and legacy.

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We buy profitable, well-managed, small-to-medium-sized businesses. Our goal is to help sustain and expand upon the legacy these businesses have created, while supporting the employees, customers, suppliers, and partners that have made their success possible. We partner with business owners and management teams to acheive the next stage of growth by implementing proven operational processes, financial controls, and growth strategies.

Our Focus

Investment & Acquisition Thesis

Specialization

We buy companies that have strong industry vertical and/or horizontal service specialization and experience.

Team

We buy companies that have experienced teams, with a demonstrated passion for their work and commitment to excellence.

Systems

We buy companies that have (or have the potential for) well-documented and trained systems and processes.

Customers

We buy companies that have low customer concentration and diversified client bases with high levels of customer satisfaction

Investment Criteria

Target Investment Size: $1 - 7 Million
Target Revenue: $1,000,000 - $5,000,000
Target EBITDA: $300,000 - $1,500,000

Industry Focus

Digital Marketing Services
E-Commerce
IT & Managed Services
Software as a Service (SaaS)
Business Services
Med Spas

Business Characteristics

Recurring revenue
Low customer concentration
High customer satisfaction
Strong company culture
Horizontal and/or vertical specialization
Experienced and tenured team
Well-developed sales and marketing pipeline

Transaction Types

Full or Partial Buyouts
Mergers
Bolt-Ons
Tuck-Ins
Rollups

Post-Closing Initiatives

Sales & Marketing Growth Strategies
Operational Process Improvements
Strategic Personnel Upgrades
Market Penetration / Expansion
Financial Controls

Founders and Business owners

Selling Your Business

What's Your Business Worth?

Selling a business, for many business owners, is a first-time experience. So when it comes to valuing a business, the reality is that most small business owners do not know what their business is worth, or how a valuation is determined. This is especially significant, because for many business owners, a large portion of their net worth is their business. Therefore, it is important to understand that factors that have the greatest impact on valuation. There are advisors that work with sellers to help determine valuation and how to best postion a business to potential buyers. However, as buyers of small business we can tell you that a business is valued based on a straightforward formula that considers both financial performance and tranferable value factors. Essentially it boils down to taking the annual net profit (or EBITDA) and applying a multiple to that number.

Earnings

The starting point for every business valuation begins with understanding how much much money it makes in earnings: How much profit does the business make before factoring interest, taxes, depreciation, and amortization. This is known as EBITDA. The higher the EBITDA, the higher the valuation.

Multiple

When dermining what multiple, or how many times EBITDA a business is worth, there is typically a market average or range for every industry based on the size of the business. Multiples on the higher end of the range go to best-in-class businesses with high tranfer value. Whereas businesses with low transfer value will command smaller mutiples.

Tranfer Value and Other Factors That Drive Higher Multiples and Valuations

While many small business owners don't know what their business is worth, even fewer understand the factors that will drive value beyond greater profitablity. However, these factors are critical and can have a significant impact on the value of a business. Consider two businesses with $500,000 in annual net profit in an industry with multiples in the 2.5 - 4.5 range. The first one has a sterling reputation in the industry, a talented and experienced team, and does not heavily rely on the business owner or founder to be successful. A buyer might offer a 3.8 multiple or $1,900,000 for the business. Wheras the second business has a so so reputation, an average team with short tenure, and relies heavily on the owner or founder to be successful. In that case most buyers would offer significantly less, say a 2.6 multiple or $1,3000,000. So what can business owners do to command higher multiples?

Download a complete list of all the factors we use to evaluate a business to determine what multiple to apply in crafting an offer, when determining a multiple or valuation when making an offer.

Strong Risk-Adjusted Returns

Investors

Looking to diversify your portfolio beyond public markets and real estate?

We operate on an SPV model. So rather than raising a fund, we enable accredited invesment partners to evaluate and invest directly into a businesses on a deal-by-deal basis. Partners have direct equity and owership in acquired companies, receive preferred cash-on-cash returns and distributions, and participate in liquid events.

Let Us Do The Hard Work

How It Works...

Source & Evaluate

We originate, evaluate, and underwrite potential opportunites that fit our deal specifications.

invest

We present accredited investment partners with opportunities to invest in specific deals as shareholders, prior to making offers.

Once we have an accepted offer, we conduct legal and financial due diligence, secure debt financing, and close the transaction.

Make Distributions

After closing a transaction our goal is to maintain continuity and profitablity, and begin making distributions to owners.

We’d Love to Meet You!

Let's Talk...

If you are interested in selling your business or investing in acquiring a business, get in touch, and we can schedule a discovery call to discuss your goals.