we buy companies so you can evolve into the next stage of your life
we buy companies so you can evolve into the next stage of your life
The SIG Investment Process includes four phases: Evaluation of opportunities (investment criterion listed on this page), acquisition execution, partnering with management and long-term planning. Each acquisition is unique - but in our experience - the acquisition process generally lasts two to eight months after a company has been identified as a preferred candidate. Partnering with management and long-term planning timelines are very specific to the needs and dynamics of a given acquisition target. Generically speaking, we look to work with existing management to identify areas of growth and work to establish measurable metrics that will allow for evaluation over time.
SIG is interested in purchasing pre-middle market companies. Each opportunity is unique, and the criteria listed below serve as a general outline of factors we consider when evaluating a company:
1. Historical Performance: Stable 3-5-year profitable financial performance; steady growth
2. EBITDA: Target of $500k-$3MM; at least 15% and consistent over time
3. Customers: Loyal / Consistent recurring revenue (sticky customers); Minimal margin concentration with any given customer (Ideal X<5%); Annual customer churn < 25%; Low % of the cust spend; Switching costs
4. Growth: Steady historical growth; Easily recognized opportunities
5. Industry: Niche with competitive advantage(s); Minimal cyclical nature; Service & Manufacturing - minimum EBITDA Margin of 20%; Wholesale & Distribution - minimum EBITDA Margin of 15%
6. Management Team: Strong team culture with interest in investing in themselves (ownership); possibly in need of additional management and/or BOD expertise to execute on future growth opportunities
7. Owner/Operator: Serious about liquidity event; no clear successor
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