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Investment Criteria

Pivoton Capital plans to acquire and operate a profitable company where the existing owner is seeking to transition out of the business. Below are some characteristics of an ideal acquisition target for Pivoton Capital:

Company

N

Privately-held and based in the U.S. or Canada

N

Scalable, simple and straightforward business model

N

High share of recurring / repeatable revenue

N

Diverse and loyal customer base without concentration

N

Experienced, competent and honest middle management

N

Niche service / asset-light business

Financial

N

Recurring revenue growing at or above industry growth

N

Low capital expenditure and working capital requirements

N

Stable recurring and predictable cash flows

N

Sustained profitable operations

N

Minimum EBITDA margin of 10%

N

EBITDA between $1.5 million – $5.0 million

Industry

N

Highly fragmented

N

Lot of white space available

N

Stable / low cyclicality

N

Growing at >2x GDP

N

Low external risk factors

Context

N

Owner seeking liquidity and wanting to transition out of daily operations for external, not business related reasons (e.g., health reasons, retirement, personal reasons)

N

No succession plan in place

N

Need of additional expertise, capital and board experience

N

 

Pivoton Capital collaborates with business advisors and brokers, thus if you have an opportunity that meets our investment criteria, please contact us.