Mergers and Acquisitions

S&P capital partners graph

The Changing Nature of M&A:

S&P Capital Partners values the complexity from which M&A processes are built and has years of experience assisting business owners like yourself. We keep a finger on the pulse of current market trends and valuation metrics. Companies and firms in the lower middle market, from plastics manufacturers to specialty contractors offer strategic buyers, who are already in the industry, an opportunity to cultivate market share via acquisition versus the slow, uncertain, and costly expense of organic growth. Via acquisition, strategic buyers immediately add top-line revenue and bottom-line profitability to their financial statements. In addition, they’re able to add ancillary services and product lines, access to new customers, streamlined operational expenses, better negotiated and more cost-effective rates of fixed expenses, and in many cases, reach new geographies and expand access to new resources.

The Market

The lower middle market, businesses up to $100m in enterprise value, offers a diverse and varied range of companies from generational family manufacturing operations to innovative tech advanced software development firms. Although highly fragmented, the lower middle market is the spine and nerve center of the U.S. economy. The lower middle market is home to 350,000+ U.S.-based businesses and employs more Americans than any other market segment.

Opportunity

In many cases, buyers in the lower middle market will want to incentivize and encourage business owners and management team members to participate in the transition. You’ll be able to position your team for improved pay structures and benefits as the new company scales. In addition, some owners may benefit from a consulting agreement beyond transition if their industry experience or relationships might positively impact the new operation.

Integration and Improvement

Your industry experience, years of research and development, and operational knowledge have value beyond the business sale price and terms. Many investment groups partner with the founder or current owner to create a buy and build platform operation. The initial investment, the ‘platform’ creates the foundation through which investors grow organically and through acquisition. Businesses are then able to grow their product lines, list of services provided, increase their geographical footprint, increase base pool of talent, and streamline internal processes, procedures, and acquisition costs.

  • Resilience
  • Services
  • M&A Approach

Resilience During Economic Downturn

The lower middle market has demonstrated resilience during economic downturns, often outperforming larger companies. That resilience creates an attractive sector for mergers and acquisitions (M&A) as it offers stability and growth potential even in challenging economic environments.

In our decades of M&A experience, we’ve seen business performance improve immediately once we’ve established a range of value based on a diverse set of metrics. Our analytics will help you establish a baseline foundation of business value. Once we determine that range of value, we can then clearly delineate several forward objectives.

After data gathering, identifying necessary resources, developing a process framework, assigning tasks, and establishing regular and transparent communication up and down the organizational chart, we’ll continue to review and track progress while continuously evaluating target performance metrics.

Reasons, timing, documentation, determining value, courting potential buyers, managing financial, legal, HR, insurance, environmental, and taxation diligence are all part of selling a business entity. It’s not an easy task to sell a business at any price point. There are variables, moving parts, and a lot of unknowns that get answered as we work through the process.

We don’t offer a cookie cutter assembly line process. Our team creates bespoke processes from valuation, to marketing, to acquisition target identification, to transaction, to close, and beyond. We don’t take shortcuts, we’re diligent and persistent, and our process is transparent from the very start.


mountain range smoky mountains

Industries We Serve

Real world deal experience. We’ve spent the last 25+ years incrementally improving our processes while working on hundreds of sell side transactions in just about every industry. We target privately held businesses with revenue ranging upwards of $150m and we work wherever we’re a value add. We’ve closed transactions from across the United States and will become resident experts in your business by the time we go to market. See a partial list of S&P Capital Partners industry subset experience below:

Healthcare
  • Outsourced Services
  • Clinics & Practices
  • Pharmacy Services
  • Healthcare IT, Devises, & Equipment
  • Wellness
  • Managed Care Services
Industrial Services
  • HVAC, Plumbing, Electrical 
  • Waste Management
  • Roofing
  • Construction & Engineering 
  • Fire Safety & Control
  • Pest Control
  • Janitorial Services
Business Services
  • Marketing Services
  • Legal Services
  • Education & Training (equipment, proprietary educational materials)
  • Insurance
  • IT Managed Services
  • Business Process Outsourcing
  • Simulation & Training
  • Human Capital
Consumer
  • Beauty products (and services)
  • Personal Services
  • Home Services
  • eCommerce & Retail
  • Media & Entertainment 
  • Wholesalers
  • Private Label
  • Fitness & Wellness
Manufacturing
  • Logistics
  • Advanced Manufacturing
  • Contract Manufacturing
  • Producers & Processors
  • Supply Chain 
  • Suppliers & Distributors
  • Paper & Packaging 
  • Industrial
Food & Beverage
  • Craft Beer Manufacturing
  • Distilleries 
  • F&B Distributors
  • Vending Services 
  • Wineries
  • Wellness & Nutrition Products/Services
  • Craft Coffee & other beverages

If you’re considering a potential transaction, S&P Capital Partners are ready to help. Schedule a free consultation on our online contact form or call us to set up an appointment.