Business Characteristics
We’re looking to partner with an owner who runs a profitable business with multiple avenues for growth
Fragmented and Growing Industry
No single players with outsized market share
Growth tailwinds are driven more by addressable market opportunity expansion than share grabs from competitors
The overall pie is growing, not just your slice of the pie
Easy to Understand Operations
Your most junior employee can explain what your business does – and how it does it – just as easily as you can
Low Cyclicality and Seasonality
Profitable in good times and bad
Financial Criteria
Predictable, Recurring Revenue
$10–$30 million of revenue
80%+ of last year’s customers are this year’s customers
Strong preference for revenue that is contractually recurring
Healthy Margins
20%+ pre-tax profit margin
You provide a mission-critical service resulting in healthy margins
Low Capital Requirements
Business does not need constant and costly infusion of capital to maintain baseline operations
Customer base can scale at a faster rate than the capital necessary to serve those new customers