INVESTMENT CRITERIA
what we're looking for
Company Characteristics
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A services business
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We're open minded to many industries, but these markets have stood out to use for a long time: security monitoring, pest control, appliance repair, and medical billing
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Located within 75 miles of Denver (including Fort Collins and Colorado Springs)
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Recurring revenue model
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Strong and diverse customer base
Financial Profile
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$750k to $3M of annual earnings (EBITDA)
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Recurring pricing model
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Strong customer retention
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Limited capital expenditures
Owner's Goals
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Owner looking to retire or step back
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Desires meaningful liquidity
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Willingness to support a transition period
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Interested in the long-term success of the business
What does the acquisition process look like?
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Intro: Let's get to know each other! Intro call to explore the opportunity followed by meetings in-person to see if there's a fit.
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Data Request: We'll sign an NDA, and will ask for key data requests (financials, redacted customer billing detail, employee roster, etc.) we'll use to value the business.
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Offer: Once we align on valuation, we'll formalize high-level valuation and structure specifics in a Letter of Intent (LOI). This non-binding agreement signifies the intent for both parties to work through problems to get to a close.
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Confirmatory Diligence (LOI to Close): We'll work through confirmatory diligence streams and legal documents over a period of 2-3 months to arrive at a close.
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Close: Funds wired, Purchase Agreement signed!
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Transition Period: We'll work together during the confirmatory diligence period to develop a transition plan that sets the business up for success.