Capitalizing on Change
…..without Change, there would be no Butterflies
Since 1997
Boutique NanoCap (Small Business) Buyout Firm
Active Technology Pivot Investor – Non Operational
Build-to-Last Long Term Hold Strategy for our Own Book
+1-613-829-0050
A SPe/SFO Class 1 LP
Specialized Private Equity/Single Family Office
Legacy Investments Program:
Are You Looking to Sell Your Business?
After years of blood, sweat, and too many tears, you and your team have decided that it is time to sell. We understand that owners and investors always want to get the maximum ROI for their hard work and that the future of the operational staff holds promise.
For Small Business Owners… It’s Personal
- Entrepreneurs and families often invest their life work building their business into uniquely valuable enterprises.
- We Understand the serious responsibilities of being the custodian of these businesses during their next phase of growth and development.
- Following acquisition we strive to maintain continuity, preserving value, brand, employee culture, business relationships, and infrastructure you have created.
- We get it… it is personal… we will work to protect your good name by honoring your commitments to suppliers and customers.
- Respect. We have a profound respect for talented people with business-building operational capabilities
- Alignment. We partner with management teams based on: shared core principles, mutual respect, common goals, and valued trust.
- Quality. We limit our investment to a small number of business to allow the necessary focus to achieve our goal of building market makers.
Deal Types:
Currently, we are Actively Looking for Add-on Acquisitions: Call Back, Click-to-Talk, Chat, Customer Engagement Services, Lead Generation Business, Digital Business Services, Cloud Services, Workgroup Solutions
Not our Focus. We do not invest in:
- Real Estate
- High CapEx Requirements
- Start-ups
- Retail food services
- Franchises
- Businesses that do not have direct recurring customer relationships
- High growth multiple Companies
- Businesses with Key Dependencies (Man, Customer, Supplier)
- Businesses without professional management teams (3+)
- Regulated Industries
- Industries that have non-market forces such as: underground economies, black markets, or rely upon physical force.
- Alternative Assets, such as: Mezzanine, Credit, SBIC, Fund of Funds, Venture or Special Purpose Vehicles
Investment Criteria:
- Deal Size: up to $10mil
- Market Sectors: Technology, Enterprise Services, Financial Services, Intellectual Property Services, Hardware Controls
- Geographic Markets Operate in: North America, European Union & United Kingdom
- Company Age: 5+ Years
- Minimum Revenue: +$1mil Run Rate
- Typical Deal Factors:
- Stable and Predictable (+/- 20%) Revenue for past 5+ years
- Deep Customer Relationships
- Mature Product Offering
- Purpose Driven
- EBITDA & Cash Flow Positive
- Demonstrated Process for CoCA (Cost of Customer Acquisition) that is less than CLV (Customer Lifetime Value).
- Professional Operations Team (3+) Separate from Ownership.
- Customer List: Diversified (+5 Major Customers for more than 3 years)
Deal Flow:
We typically close within 90-120 days
Deal Flow: Discovery > Price > Structure > Close
- Discovery: 30 days or less
- Step 1: Unsolicited Pitch Decks Accepted, We will let you know within 24 hours our level of interest
- Step 2: Summary Business Plan Review, Interview & Discussion Letter,
- Step 3: Pre-Deal Due Diligence (Full Day On Site): Document Requirements: + 5yrs Historical Financials, 3yr Projection, Product Plan, Customer List, Asset List, Contracts, Team Member CV’s, Critical Event Disclosure,
- Pricing: 10 days or less
- DCF Multiple (.5x to 10x EBITDA) based on Growth, Clients, Differentiation Strength, Management Strength
- Structure: 10 days or less
- Structuring & Term Sheet,
- Typical Structure: Asset Acquisition, Double Dip – 2/3Yr Earn Out with partial VTB
- Closings: 30 days or less
- Closing Due Diligence,
- Closing Documents,
- Closing & Transition Plan
Contact:
We welcome enquiries from business owners, investors, lenders and intermediaries. If you are interested in exploring a partnership, please reach out, we look forward to working with you…
We respect the confidentiality of all information and will respond to all proposals in a timely manner.
Thomas Sierra Capital LP
95 Benson Park Rd.,
Lansdowne, Ontario, Canada, K0E 1L0
tel. 613-829-0050
[email protected]