We have a private equity firm client that is looking for a lower-middle market business to buy, or several synergistic businesses to buy, which can be rolled up into one larger firm (if you have been wanting to grow your business through acquisition). They have up to $100MM to invest into any one platform investment (the initial acquisition, follow on acquisitions, and growth capital from there). Growth plans can be organic or via acquisitions over time.
Target companies should be in the B2B or B2C digital technology space. Or, they can be a services business, selling into either SMBs or enterprise scale clients, where the services can be productized into a technology platform over time. Target financials should be in excess of $10MM in revenues and $2MM in cash flow out of the gate, either stand alone or post the rollup of known targets. And, live within a market sector that can easily support growing into at least a $100MM revenue business within 3-5 years. You must be able to clearly speak to a track record of growth and success, or have a reasonable explanation and turnaround plan in mind. Companies need to be based in the U.S.
They most likely will put their own CEO in place, to help scale the business to the next level and to integrate any M&A efforts. But, they are open to taking on the current management team in other executive capacities. Or, they can assist the current team in transitioning out of the business after a reasonable transition time (although that may raise red flags, unless you are retiring).
So, if your business profile fits the description above, or applies for others you know, please contact us via the Red Rocket website with more information about your business. Understanding we will keep everything confidential between us and our client, interested parties should provide us with the following: (1) a link to your website; (2) summary of your business; (3) summary of your industry/competition; (4) summary of your growth vision; (5) a summary of any current challenges; and (6) summary of your historical and projected revenues and cash flow, to assist us with our analysis. We may not be able to respond to all inquiries, but we will follow up with ones where we see a clear fit. Serious inquiries from successful businesses with reasonable valuation expectations only.
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