Financial Profile

$1M – $10M

Annual Revenue

  • Performance: Stable historical revenue with a minimum of 3 years of consecutive growth.

  • Visibility: Preference for highly predictable, recurring, or contractually re-occurring revenue streams.

$3M – $15M

Target Enterprise Value (EV)

  • Deal Sizes: Micro-cap and lower-middle-market focus.

  • Purchase Multiples: Target entry multiples ranging from 3.0x to 6.0x Adjusted EBITDA, depending on sector, scale, and growth profile.

< 5% of Revenue

Maintenance Capital Expenditures

  • Asset Intensity: Strictly targeting asset-light business models.

  • CapEx Thresholds: Annual maintenance CapEx must not exceed 5% of total revenue or 20% of Adjusted EBITDA, ensuring maximum cash is retained for growth and debt service.

15%+

EBITDA Margins

  • Profitability: Strong, defensible operating margins reflecting solid pricing power.

  • Adjustments: Open to reviewing standard owner add-backs and one-time non-recurring expenses

  • Target Scale: Focus on businesses generating $500K – $2.5M in absolute Adjusted EBITDA.

75%+

FCF Conversion Rate

  • Cash Flow Quality: High EBITDA-to-Free Cash Flow (FCF) conversion rate, driven by optimized cash conversion cycles (CCC).

  • Working Capital: Clean net working capital (NWC) history with minimal bad debt write-offs and efficient inventory turns.

Transaction Profile & Mandate

  • Ownership Stakes: Seeking control positions (51% to 100% equity ownership) via majority buyouts or equity recapitalizations.

  • Deal Structures: Flexible structures tailored to seller needs, including Leveraged Buyouts (LBOs), Management Buyouts (MBOs), and structured earn-outs.

  • Seller Situations: Founder/owner retirement, corporate divestitures, partner buyouts, or owners seeking liquidity while retaining minority equity rollover.

  • Transaction Velocity: Streamlined due diligence framework with a commitment to closing transactions within 45 to 60 days from an executed Letter of Intent (LOI).

  • Governance Post-Closing: Active board-level participation focused on strategic growth and institutionalization, leaving day-to-day operations to management.

INVESTMENT MANDATE TYPE

  • Platform Investments: Targeting anchor companies matching our core $1M – $10M revenue profile with scalable operational foundations, strong market positions, and robust internal systems.

  • Add-on / Roll-up Acquisitions:No minimum size thresholds; actively seeking sub-scale local operators, client books, or smaller regional competitors capable of being seamlessly integrated into our existing platform companies.

  • Geographic Execution: National deployment scope for software and enterprise technology, with a concentrated regional focus for industrial and facility service providers.