Intermediaries often play an important role in helping Serent and a business owner consummate an investment. This assistance spans from facilitating an introduction to providing counsel throughout the process until an investment is closed.
Serent prides itself on building strong professional relationships with intermediaries. This implies that we will be rapid and transparent in our interactions. It also implies we can work with intermediaries to help entrepreneurs understand how professional investors can help their business. Serent is unusual in that we are comfortable investing in businesses where the founder is looking to transition out of the company.
Serent's strategy is to be the first professional investor in profitable services companies, and to help those companies drive revenue growth. Potential investments for Serent will typically share the following characteristics:
- Annual revenue of $5 million to $100 million
- Gross margins over 40% (which signals differentiation)
- EBITDA of between $3 million and $10 million (which signals a healthy franchise of appropriate scale)
- Returns on Invested Capital over 20% (which signals asset-light, intellectual property-heavy business)
- Growth potential of over 10%, and possibly two to three times that fast
- Enterprise value of $10 million to $100 million
We have flexibility in pursuing each investment opportunity. We are able to structure transactions to meet the needs of business owners in many different circumstances, including growth equity investments, complete buy-outs, recapitalizations, roll-overs of a portion of existing equity, and management buyouts.
We can quickly assess whether we are interested in investigating a business further and promise to respond promptly to your investment opportunities.
Serent encourages intermediaries to contact us and introduce themselves, either to establish a relationship or to discuss a specific investment opportunity. We will also gladly pay compensation for successful referrals.
For more information, please click here to contact Andrew Peix.