INVESTMENT CRITERIA
We invest significant time and resources researching attractive industry segments. As a result, we can quickly assess whether we are interested in investigating a business further. This often takes place within 72 hours. If we are interested, we are able to leverage our research and move quickly to complete a transaction.
SIZE
Serent Capital usually commits $10 million to $50 million in equity in 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 $5 million to $100 million
GROWTH
We focus on growing businesses, and look for growth potential of over 10% per year
PROFITABILITY
We look for profitable businesses, typically with up to $15 million EBITDA, and returns on invested capital over 20%
STRUCTURE
We make investments of the following types:
RECAPITALIZATIONS
We provide liquidity for entrepreneurs looking to sell a majority or minority stake in their businesses, while allowing them either to retain operational control or to bring in a new management team.
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.
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 look for a meaningful ownership stake and always look for a role for Serent to work actively with management in building the business.