Investment Criteria
Slack Water Capital provides equity gap funding to entrepreneurs and self-funded searchers acquiring controlling ownership of small and medium-sized businesses. We are seeking to invest in businesses and entrepreneurs featuring a combination of the following characteristics:
Industry
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Mature, stable, and growing
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Relatively simple product or service
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Low risk of technological obsolescence
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Primarily non-cyclical demand
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Highly fragmented with opportunities for consolidation
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Example industries of interest include:
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Home services
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Facilities services
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Skilled trades
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Professional services
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Value-added distribution
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Specialty manufacturing.
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Geography
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U.S.-based businesses in states or regions with favorable trends:
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Growing population
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Ease of doing business
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Attractive tax environment
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Availability of high-quality employees
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Non U.S.-based businesses located in countries with:
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Developed rule of law
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Stable political environment
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Stable taxation and fiscal policies
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Stable currency
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Business
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Market leader or pathway to market-leadership
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High level of recurring or re-occurring revenue
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Limited level of project-based or one-time revenue
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History of growth and profitability
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Opportunities for growth and operational improvement
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Low level of capital and working capital intensity
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No material customer or supplier concentration
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Strong management team and no key person risk
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EBITDA of approximately $500,000 - $5,000,000
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Fair purchase price and transaction structure
Operating Partner
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History of academic, professional, and personal achievement
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Highly motivated, passionate, energetic, persistent, and humble
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Strong analytical and financial acumen
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Excellent communication skills and ability to build rapport with people from diverse backgrounds
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“All-in” mentality with a significant personal investment and/or personal guarantee of acquisition debt financing
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Will manage the business full-time as their sole professional focus
Start a Conversation
If you are an acquisition entrepreneur or self-funded searcher with a business under LOI that meets our criteria, and are looking for a value-add equity partner, we would love to hear from you!