Approach
Focus on systems, technology & operational improvements
INVEST
Perfect commercial growth engine and business model.
ACCELERATE GROWTH
Scale through accretive acquisitions (M&A)
BUY & BUILD
Share the rewards
HARVEST
Thematically, we believe that whether B2B or B2C, investing in companies capable of pursuing a recurring revenue model or converting their “old-line” business to a subscription approach will win disproportionately over the next ten years.
RESULTS WE PRIZE
We value businesses with high recurring or contractual revenue and great customer loyalty and longevity.
We prize businesses that have sustainable cash flows and earnings (More of the “E” in EBITDA and less of the “D” in depreciation - low cap-ex requirements).
We seek to partner with companies at or above industry growth levels that could grow more with appropriate access to capital.
THE COMPANY WE KEEP
We seek to partner with business owners and management teams who have a fire in their bellies to achieve a step-change in their company's growth, increase valuation, and have an end goal to achieve generational wealth.
These owners and management teams want to unlock the keys to significant growth and value creation by leveraging a wider team, greater access to capital and know-how around true value creation.
JOURNEY
We focus specifically on control buy-out transactions (51%+) in companies that are customer-obsessed and deploying a recurring revenue or contractual revenue model. They “sell it once” and then work tirelessly to create “raving fans” by providing an exceptional customer experience.
FOCUS
We are better together. Business owners benefit from our experience and expertise to achieve outlier outcomes; Capital Partners help us fund and deliver superior returns; and Grady Bay needs both to bring industry-leading results and returns.
Partnership Oriented
1
We bring best in class know-how, but not at the expense of what got us here.
Founder Friendly
2
We honor & respect each contributor to our combined success - Founder/Entrepreneur, teammates, capital providers, lenders, and suppliers. Truth, transparency and fair dealing will always be our guide.
Respect, Honor, Truth
3
We look vigorously for growth opportunities, are creative deal makers, value builders, and problem solvers who never stop learning and stiving.
Intellectually Curious
4
We are more than financial engineers - we get creative and call from a depth & breadth of experience to win disproportionately.
Entrepreneurial
5
We have a passion for our customers and look to help create an enduring culture of excellence and a great place to work for our teammates.
Customer and Culture driven
6
Core Tenets
Invest together
We like lower middle market recurring revenue or strong contractual revenue businesses in the “Subscription Economy” – These businesses will return differentiated alpha over the next 10 years.
Partnership
Partner with management and further professionalize systems and leadership capabilities and incentivize management to out-perform their peers and drive revenue and profit.
Grow
We seek industries and sectors that are growing, are highly fragmented, or have significant consolidation opportunities.
Harvest
When we win collectively, we win bigger and create longer-term value. Together we decide when to sew and when to harvest with long term value creation as our guide.
Our Investment Philosophy
Investment Criteria
Majority equity positions US / CAN HQ companies
Pacific Northwest / Western States and Provinces
EBITDA $2MM – $20MM
EBITDA Margins >10%
Growth Rate >10%
Min. 30% recurring revenues with a pathway to 70%+
Minimum platform EV $20MM
Minimum equity check size $5MM
* We prefer a reasonable founder/owner succession timetable; however, we can accommodate the Founder's exit with strong management teams in place.
