corporate acquisitions

Iglesias Capital Group partners with established, lower-middle-market businesses to drive long-term operational excellence and strategic growth. We focus on mission-critical platform technologies and resilient industrial service companies characterized by sustainable margins, strong market defense, and stable historical cash flows

technolgy

  • Target Sectors: B2B SaaS, enterprise application software, Managed Service Providers (MSPs), IT consulting, cloud infrastructure management, and cyber-security services.

  • Business Profile: Fully commercialized platforms showing strong product-market fit, high recurring contract density, low customer churn, and defensible service delivery frameworks.

  • Financial Metrics: Highly predictable revenue models with a strong preference for high ARR/MRR (Annual/Monthly Recurring Revenue) mix or long-term multi-year master service agreements (MSAs).

  • Investment Thesis: Capital deployment aimed at scaling go-to-market strategies, expanding technical talent pools, increasing regional customer density, or executing targeted add-on acquisitions.

  • Transaction Parameters: Flexible deal structures optimized for management buyouts (MBOs), majority growth equity infusions, or founder transitions.

    • Letter of Intent (LOI) delivery within 48 to 72 hours

    • Streamlined technology stack, contract auditing, and operational due diligence frameworks

    • Fully discretionary capital blocks allowing for swift, certain corporate closes

industrials

  • Target Sectors: Commercial facility services, specialized industrial maintenance, HVAC infrastructure, commercial pest control, and janitorial logistics.

  • Business Profile: Route-based or contract-heavy service models with highly fragmented local competition, resilient regional density, and strong asset utilization.

  • Financial Metrics: Stable historical cash flow conversions with predictable CapEx requirements, defensible contract pricing power, and strong operating margins.

  • Investment Thesis: Execution of programmatic "buy-and-build" strategies, driving equity growth via regional tuck-in expansions and centralized back-office optimization.

  • Transaction Parameters: Tailored deal execution built for retiring founders, corporate carve-outs, or operators seeking institutional growth partners.

    • Confidential, friction-free business transitions protecting local brand equity

    • Flexible contract parameters tailored to handle specific seller tax strategies

    • Clean closing execution backed by immediate, fully committed capital blocks

investment criteria

$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

Enterprise Value (EV)

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

  • Purchase Multiples: Target entry multiples ranging from 3.0x to 7.0x 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 $750K – $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.

technology yield

  • Target Returns: Underwriting software and enterprise tech investments to achieve a target net Internal Rate of Return (IRR) of 25%+ over our holding period.

  • Equity Multiples: Prioritizing scalable B2B platforms and IT services engineered to deliver a 3.0x+ Multiple on Invested Capital (MOIC).

  • Capital Efficiency: Targeting asset-light business profiles demonstrating a strong Return on Invested Capital (ROIC) driven by high software margin retention.

industrials yield

  • Target Returns: Underwriting route-based industrial infrastructure and facility service acquisitions to achieve a target net IRR of 20%+.

  • Equity Multiples: Structuring core platform investments and strategic add-on expansions to clear a consistent 2.0x to 2.5x+ Multiple on Invested Capital (MOIC).

  • Yield Compounding: Utilizing centralized back-office optimization and regional tuck-in density to accelerate organic EBITDA growth and drive steady investor distributions.

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.