M&A Fund Overview
The company is a privately held, entrepreneurial investment firm with a focus on acquiring and running a small to medium sized business in North America. We are generally looking only to acquire a controlling stake in a stable company with a track history of profitability. We provide an excellent exit alternative for business owners who are considering retirement or taking a significantly reduced role in daily operations. We differ from traditional strategic or PE buyers as we offer a unique combination of capital and financial flexibility and management expertise.
Acquisition or Majority-buyout Criteria
Companies that qualify to be potentially bought by the fund are:
US or Canadian companies
Revenue must be recurring and/or SaaS-like and growing revenue with predictive sales revenue.
EBITDA between $1M to $5M as of the last financial year
EBITDA margin of 30% or higher and steady growth or stable EBITDA margin
Business is not founder-centric i.e. does not depend on the special profile or special relationships or special resources of the founder(s) of the company
Industries of interest include Software, Tech Enabled Services, Business Support Services, Healthcare, Education, Specialized Logistics and Distribution, and any other areas with attractive industry dynamics.
Preference for marketplace-like or platform-like business and hence not founder-dependent
Sustainable competitive advantage
Good diversification of client revenue with no large concentration of client or client revenue
Valuations generally between $10M up to $80M CAD.
We are directly in touch with several single-family offices wishing to purchase income-generating real estate in North America.
Valuations generally between $10M up to $150M USD.
Minimum cap rate of 3% (net operating income / purchase price of asset) with value-add opportunity to increase cap rate potentially to 5% or more.
Preferably current occupancy rate at 60% to 80%
Commercial real estate (tenancy-type focused such as shopping malls or shopping complexes, wineries, data centers etc. we are NOT interested in warehouses or the like.) and for-rent residential assets such as student housing, senior homes, apartment-for-rent etc