Acquisition strategy
Our strategy.
We want to own and operate good businesses for a long time. This page explains what we look for, how deals can be structured, and how we go about it.
The buy box
We tend to be a good fit for companies with:
- Annual revenue of $1 million to $10 million.
- EBITDA margins of 15% or more. EBITDA is earnings before interest, taxes, depreciation and amortization, a common way to measure how much cash a business throws off from its operations.
- A fragmented customer base, meaning no single customer or small group of customers accounts for most of the revenue.
- Steady cash flow.
- Work that AI can make faster or more accurate.
These are starting points for a conversation. A business that misses one of them is still welcome to write to us.
Transaction types
- Founder or family succession. An owner or family wants to hand the business to someone who will run it well.
- Divestitures. A larger company is selling a division or business line it no longer wants to run.
- Asset sales. We buy selected assets of a business, such as equipment, contracts or brands, instead of the whole company.
- Leveraged buyouts. We buy a company using a combination of our own equity and borrowed money, which the company's cash flow helps repay.
How we work
We are patient and disciplined. We would rather pass on a deal than rush one. After closing, we work alongside the existing team, learn the business first, and change things in sequence.
We have invested in, managed and worked for middle-market firms, meaning mid-sized companies. We listen closely, speak candidly and treat people with respect. We criticize our own work out loud, even when that is uncomfortable. We measure ourselves and our teams against the best.