Investment Criteria

ACG: Where Succession Meets Strategic Partnership

At ACG, our mission is to identify, acquire, and actively foster the growth of a singularly exceptional company over a long-term horizon. Our approach is rooted in meticulous research and is centered around establishing mutually rewarding, collaborative relationships under favorable conditions. This safeguards the sustained success of the business. We envisage the ideal partnership to be one where the company embodies the following key attributes:

Industry

We have a deep interest in SaaS, B2B, and tech-enabled services, especially when they form part of an industry characterized by:

  • Robust Growth: Surpassing GDP (>8%)

  • Size: Enough Companies and Room for Growth

  • Offering Vital Services: Businesses That Deliver High-Value, Hard-to-Replace Services

  • Uncovering Potential: Seizing Growth Opportunities in Industries With Underserved Customers

  • Qualitative Measures: Seeking High-Quality Business Models within Industry Framework

Company

We seek a thriving US-based company with solid competitive advantages committed to providing superior services or products. The characteristics that exemplify this ideal company are as follows:

  • Strong competitive barriers that grant a distinct market advantage

  • A diverse and loyal customer base, with no single client contributing to more than 20% of the revenue, and customer churn under 10%

  • Robust employee relations, fostering a cooperative and productive work environment, and has a strong middle management team keen on continuing their journey with the company

  • Owner interested in divesting a significant portion of their private ownership stake

Financials

We are in pursuit of a healthy, profitable business that offers a stable foundation for continuous growth. The key criteria of this ideal business include:

  • Annual EBITDA of $2-10 million

  • A track record of profitability for more than three years, demonstrating its consistent performance

  • A high degree of recurring revenue, indicative of a reliable and steady cash flow

  • Profit margins exceeding 15%

  • Low capital intensity, suggesting effective utilization of resources for maximum output

We understand every business is unique and consider the above as guidelines. We would welcome the opportunity to discuss your business' unique fit within these criteria.