Investment Criteria
Size
Serent Capital usually commits $10 million to $100 million in capital to an investment. We also have the ability to finance larger transactions for the right opportunity.
In general, the companies in which we invest have the following characteristics:
- Revenue. We are comfortable with a wide range of revenue size, ranging from $10 million to $100 million.
- Growth. We focus on growing businesses, and look for growth potential of over 10%.
- Profitability. We look for profitable businesses, typically with EBITDA between $3 million and $10 million, and returns on invested capital over 20%.
Structure
We make investments of the following types:
- Buyouts. Through a highly collaborative process, we are able to develop thoughtful and successful exit strategies for business owners. Our versatile approach allows us to partner with existing management teams or to engage new management if needed.
- Recapitalizations. We provide liquidity for entrepreneurs looking to sell a majority stake in their businesses, while allowing them either to retain operational control or to bring in a new management team.
- Growth Capital. We bring our business building experience and financial capital to bear to make significant investments that accelerate growth. This is typically done in conjunction with a recapitalization.
In our investments, we typically look for a majority ownership stake and always look for a role for Serent to work actively with management in building the business.
Back to Top