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.
Want to discuss a potential partnership?
Let's have a chat to get to know each other.