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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: What size businesses are you interested in?
It’s a broad range, with a lot of factors being considered. Generally everything from mid $xx,xxx to low $x,xxx,xxx can work. The lower the investment amount the less ongoing time we are able to allocate to a deal (time is a finite resource after all). The higher the investment amount the more co-investors we might pull in on the deal.
Q: What types of valuations do you give to businesses?
We’re aiming to be very fair here. Each business is very different, but on average we would value your business just a bit higher than a business broker would if you were selling the entire thing.
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 would be on the same terms as the founder on a pro-rata basis.
Q: How are we different from traditional funds?
- We write a check directly to the founder, not to the business.
- 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?
Most likely no, but it doesn’t hurt to reach out and say hi. There are exceptions to every rule.
Q: How much time will you spend on my business if we partner?
It’s going to be realllllly tough to give a blanket statement that would apply to all businesses. Some will need more help, some not as much. The ideal situation is where we would spend a fair amount of time with you during the first couple of months, and then taper it down to a scheduled call once or twice a month (or when needed) afterwards. Also, assuming that our marketing company is working on your business, that part will be a much longer engagement, as these things take time.