Investment Criteria

Geographic Area:

San Diego, Orange County, Riverside County, Los Angeles, or

willing to travel within an hour’s flight from San Diego based on business qualifications.

Focused on opportunities with the following attributes:

Founders Equity focuses on opportunities within our niche market of service companies, contracting, and sub-trades with a revenue of $5mm to $8mm and an EBITDA between $500k - $1.5m ($500k SDE+). These companies would have a management team that would stay active through acquisition and after. 

Recurring or Stable Revenue Business Models:

Founders Equity seeks companies with a business model where the revenue is predictable, stable, and likely to continue in the future.

Length of Customer Relationships:

Founders Equity believes that the length of the relationship is a precursor of increased customer loyalty, which leads to a higher volume of purchases, an increased frequency of purchases, and higher customer retention which would command a higher selling price for the exiting founder and more stability and assurance for buyer; Founders Equity.

Strong Margins (EBITDA and FCF)

Founders Equity seeks companies with a minimum level of profitability at the EBITDA level with strong capital efficiency exhibited by strong free cash flow (FCF) margins 

Essential Service Nature:

Founders Equity believes essential services are indispensable to preserving the life, health, safety, and basic functioning of the businesses or industries they support.

Industry in the beginning phase of Active Consolidation:

Founders Equity seeks to participate in markets that are at a level of maturity such that they are starting to be in a phase of active consolidation.