We are actively seeking diverse investment opportunities across a broad range of sectors, prioritizing companies with solid end-market fundamentals & potential for value creation.
(Stable demand, growth potential, and resilience to economic fluctuations)
Financial Requirements
- EBITDA: $600k to $5 million
- Profitability History: Consistent over 3+ years
Preferred Company Characteristics
- The owner is willing to step away from daily management
- Experienced middle management planning to remain post-acquisition
- Solid, employee retention rates
- No single customer accounts for more than 10-15% of total revenue
Targeted Locations for Investment
We are interested in businesses located in California, mainly in areas experiencing significant population growth and job expansion. As Managing Principles, we are open to relocating to ensure the successful operation of the acquired business.
Our Capital Source
We leverage a combination or concentration of Personal Capital, Private Capital, SBA 7(a) financing, asset financing, LBOs, strategic partnerships, assuming existing business debt, seller financing, etc. Whatever it takes to get the job done. Lastly, we highly encourage our sellers to receive 70-90% cash upfront at closing and keep 10-30% invested in the deal for at least the first 2-7 years. By retaining some equity, sellers not only defer capital gains, maximizing their tax benefits but also stay connected to the future success of the business, potentially earning even more as the company grows under new management, depending on how we structure the note.
Our Process
CONNECT
We engage in detailed conversations about the business, the owner’s objectives, timeline, and preferences. This may include signing an NDA, collecting financial information, and initiating pricing discussions.
LETTER OF INTENT
Once we come to an agreement on key terms, structure, and pricing, we proceed with a non-binding LOI and enter the due diligence phase.
DUE DILIGENCE
An in-depth examination of the business is conducted, covering financial history, management team evaluation, customer contracts, growth potential, and identifying any risks.
CLOSING
Finalizing the agreement involves detailed contract negotiations with our legal and accounting teams, developing a transition plan, signing all legal documentation, and then celebrating the successful acquisition.
AFTER THE SALE
Our managing principles assume direct management roles, committing to the continued success and growth of the business.
Contact Us
If you have an opportunity, require further information, or wish to delve deeper into a discussion, we encourage you to get in touch with us.
rousecapitalpartners.com 