Strategies
Sagemeadow Capital Partners offers several different strategies for founders and family-owned businesses.
TRANSACTION TYPE
Recapitalizations and management buyouts. Generally seeking control investments but certain minority-stake transactions will be considered.
RATIONALE
Perfect for founders and family-owned businesses seeking some liquidity while adding a strategic partner to bring capital, experience and connections to accelerate growth. Also ideal for management teams looking to buy out founders who are no longer involved in the day-to-day management of the business.
STRATEGY
Sagemeadow is looking to partner with strong existing management teams that will remain with the business post-transaction.
EBITDA
$3M - $12M
REVENUE
$10M - $100M
ENTERPRISE VALUE
$15M - $120M
GEOGRAPHY
Core focus in Texas but actively looking across all of the Southern and Southwestern United States (add-ons considered in all of North America)
SECTORS OF FOCUS
Services, Distribution and Consumer
HOLD PERIOD
Typically 5-7 years
TRANSACTION TYPE
Buyouts. Control investments required.
RATIONALE
Perfect for founders and family-owned businesses where the key stakeholder is nearing retirement but wants to ensure that his or her legacy continues forward with a strong steward.
STRATEGY
Founder or family-run business with CEO looking to eventually exit the business; transition period required.
EBITDA
$1M - $5M
REVENUE
$3M - $40M
ENTERPRISE VALUE
$5M - $50M
(some seller-financing required)GEOGRAPHY
Texas, Arizona and Florida only
SECTORS OF FOCUS
Services, Distribution and Consumer
HOLD PERIOD
Indefinite
TRANSACTION TYPE
Independent board of director role.
RATIONALE
Perfect for companies looking to supplement their board of directors with an executive with extensive experience in the middle-market. Serves as a low-risk way to organically build a longer-term relationship that may ultimately lead to a future transaction.
STRATEGY
- Board-level expertise to help professionalize founder or family-owned businesses.
- Board-level expertise for lower middle-market private equity sponsors or independent sponsors.
- Board-level expertise for stressed or distressed private-equity sponsor owned or creditor owned businesses.
EBITDA
No minimum
REVENUE
No minimum
ENTERPRISE VALUE
No minimum
GEOGRAPHY
United States
SECTORS OF FOCUS
No sector limitations
COMPENSATION
Cash and/or equity
Key Sectors of Focus
Sagemeadow focuses on three core sectors of focus.
Services
Distribution
Consumer
Key Characteristics
Sagemeadow looks for businesses with the following key characteristics
Proven management team
Strategic market position
Fragmented industries ripe for consolidation
Longstanding customer relationships
Double digit EBITDA margins
