Mission

Succession Equity exists to purchase and manage successful small- or medium-sized businesses through new investment and leadership. We have committed substantial capital resources to achieve these goals and we are actively searching for opportunities.

Are we the right fit for you and your business?

For the tens of thousands of small and family-owned businesses in the United States that need a new generation of leadership, Succession Equity can offer a vital solution:

For business owners, we can assist owners with a successful exit so that they may pursue new endeavors, diversify their wealth and manage tax liabilities. We will structure transactions to suit owners’ personal and financial needs.

For a company and its employees, Succession Equity provides capable and energetic new leadership, stable and long term ownership, and access to capital to fund continued investment.

Succession Equity’s capital is fully-committed and available immediately to invest in companies that meet our criteria. We intend to provide new leadership for a company after the transaction and, as a result, we specialize in helping owners who are looking to retire or diversify their financial holdings.  

Approach

Succession Equity helps business owners achieve liquidity and leads businesses to continued profitable growth. We offer a combination of leadership, capital, confidentiality and the goal of long-term ownership unlike those offered by business brokers, investment banks, or other private equity firms.

Using our substantial capital and management resources, we provide a valuation and will continue to invest in a business after the transaction.  We will structure transactions to meet owners’ needs to maximize cash at close, minimize taxes, provide continued income, or provide opportunities to participate in the future results of the business. We also seek to to maintain the integrity, commitment and reputation nurtured during the company's history by valuing employees, customers and the communities in which they operate.

Investment Criteria

Succession Equity is focused on the lower middle-market and small business range and looks for opportunities that meet many of the following criteria:

Business Characteristics

An established, profitable business model

Significant portion of revenue from recurring sources

Diverse customer and industry base

Competitive advantage

Seeking new ownership

Financial Characteristics

Stable, positive cash flows for previous 3-5 years

EBITDA Margin >10%

EBIT/EDITDA ratio of >75%

Annual Free Cash Flow between $250,000 and $1.0 million

Targeted sales price between 3x and 5x Free Cash Flow (FCF)

Identified Industries

Business Services

Distribution

Manufacturing

Equipment Rental

Niche Consumer Goods

Succession Equity examines opportunities in other industries

Identified Geographies

Southeast: North Carolina, South Carolina, Virginia, Tennessee, Georgia, Florida

Midwest: Missouri