Traditional private equity will invest in a single, stand-alone company with +$20 million in revenues.
This platform is the foundation for growth.
The goal is to grow to $50-75 million in revenue.
We bring together two to three small companies who combined together generate +$20 million in revenue.
We are creating a new platform: a merger of 2-3 small companies.
This merger increases cash flow to fund new capital expenditures, new product development, and new sales & marketing initiatives.
The merger expands the product portfolio. This provides synergies with the opportunity to cross-sell products and services and increase share-of-wallet.
Our platform is more powerful. There is more growth.
As a result, the owners involved receive a higher valuation, higher cash-at-closing, and a bigger upside through rollover equity of a much bigger consolidated company.
(The 2nd bite of the apple is from a much bigger apple) .
The owners of the two to three small companies involved will drive this process toward $50-75 million in revenue and an exit in Year 5.
We change the question from "How to sell a small business?
to "How to sell a platform?"
At some point, you may be considering selling your small business. You may be looking at steps to selling a small business. There are challenges. Size. Scale. What is a fair valuation for years of effort?
We change the question. We change the game. We offer you a different approach.
Building and selling a platform provides you as an owner with a higher valuation, higher cash-at-closing, and a bigger upside through equity in a much bigger consolidated company. We are in the business of small business mergers and acquisitions and creating new platforms.
