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Frequently Asked Questions
Q: Will you buy 100% of a business?
No. Running the day to day of businesses is just not what we’re best at.
Q: Will you provide a PG for lenders?
No. If doing an SBA deal we will need to stay under the personal-guarantee equity limit.
Q: What size businesses are you interested in?
It’s a broad range. The higher the investment amount the more co-investors we might pull in on the deal, the lower the amount the less hassle it needs to be.
Q: What types of valuations do you give to businesses?
If we’re co-investing in an acquisition, then obviously the price is already set. If we’re buying a minority stake in an existing company the the valuation will roughly be a multiple of what the company would currently sell for if sold as a whole.
Q: How do you get paid?
We get compensated with profit distributions, and the eventual full exit of the business if the founder ever chooses that route. We are exit-agnostic as long as a business is performing well.
Q: How are we different from traditional funds?
- No LPs. We can do what we want.
- We are flexible with the structure. With everything from helping founders take chips off the table, to being funding partners to acquire an existing business, we can do it all.
- We are not concerned with “growth at all costs”. We have a profit-first mindset, growth is secondary. Small little businesses suit us just fine.
Q: Do I need to plan on “an exit”?
Nope. If you want to hold the business forever, or plan for a full exit a year from now, we’ll support you either way (and advise you on what we think would be best).
Q: Will you invest if the business is not yet profitable?
No, we are not in the venture capitalist game, but it doesn’t hurt to reach out and say hi.