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
Privately-held and based in the U.S. or Canada
Scalable, simple and straightforward business model
High share of recurring / repeatable revenue
Diverse and loyal customer base without concentration
Experienced, competent and honest middle management
Niche service / asset-light business
Financial
Recurring revenue growing at or above industry growth
Low capital expenditure and working capital requirements
Stable recurring and predictable cash flows
Sustained profitable operations
Minimum EBITDA margin of 10%
EBITDA between $1.5 million – $5.0 million
Industry
Highly fragmented
Lot of white space available
Stable / low cyclicality
Growing at >2x GDP
Low external risk factors
Context
Owner seeking liquidity and wanting to transition out of daily operations for external, not business related reasons (e.g., health reasons, retirement, personal reasons)
No succession plan in place
Need of additional expertise, capital and board experience
Pivoton Capital collaborates with business advisors and brokers, thus if you have an opportunity that meets our investment criteria, please contact us.