Mergers and Acquisitions
The S&P Capital Partners team understands the emotional ebb and flow the M&A process will create and the obstacles in our path. It’s critical to balance risk and reward with proper representation. We’re sell side representation experts who’ve spent the last 25+ years incrementally improving our processes while working on hundreds of M&A transactions in just about every industry.
Our team will walk in step with you from the beginning through well after our mission is complete. We’ll find latent risks while exposing and highlighting both the positive benchmarks and your immediate and long-term growth opportunities. We’re dedicated to you and your team and will represent your interests transparently and with genuine integrity.
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.
M&A Differentiators
- 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.
Entrepreneurial Spirit
Many businesses in the lower middle market are characterized by their entrepreneurial spirit and agility. This culture of innovation and adaptability can make them attractive targets for acquisition by larger firms seeking to infuse fresh perspectives and ideas into their operations.
Key Role in Local Economies
Lower middle market businesses play a crucial role in local economies, providing employment opportunities and contributing to community development. M&A activity in this sector can have significant impacts on employment, industry dynamics, and economic growth at the local and regional level.
Access to Specialized Markets
Within the lower middle market, there are niche businesses that cater to specialized markets or industries. Acquiring these businesses can provide larger firms with access to niche customer segments, proprietary technologies, or unique distribution channels, enhancing their competitive advantage and market position.
Fragmented Landscape
The lower middle market is often characterized by its fragmented landscape, with numerous small to mid-sized companies operating across various industries. This fragmentation presents both challenges and opportunities for M&A activity, as consolidating these businesses can lead to economies of scale and increased market share.
M&A Services From S&P Capital Partners
Due Diligence
S&P Capital Partners conducts a thorough, pre-transaction assessment of the target company’s operational flow, legal structure, and financial strength to determine the risks and potential rewards of acquiring them. It’s crucial to have as much information in hand before executing the deal.
Investment Partners
Along with the resources and professional experience investment partners bring to your operation, they’ll grow top line revenue and the more important bottom-line profitability while taking the daily operational headaches away from you the owner to allow you time and resources dedicated to where you excel whether it be business development, product creation, or long-term visionary planning.
Value Assessment
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.
Deal Oversight
Good transactions are built on trust, integrity, respect, and good faith commitment. They’re not easy to close and transition at any dollar amount. We investigate investor group funding decks prior to making seller introductions as part of our potential buyer onboarding process. You can rest assured that when we make an introduction the buyer group has completed a series of steps which validate their credibility and willingness to participate in our streamlined, efficient, and precise transactional process.
S&P Capital Partners’ Approach to M&A
A Straightforward, Simple Path
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.
Deep Resources and Intelligence
We have access to the most advanced research tools in our industry and we know the metrics that maximize a seller’s total benefit. We’re experienced in just about every industry and will be the resident experts on your business, and your industry, by the time we go to market.
Tools for Small Businesses
We have access to the most advanced research tools in our industry and we know the metrics that maximize a seller’s total benefit. The companies we represent are successful operations but may not have straightforward entryway to the banking and financial tools used by billion-dollar entities. We bridge that gap by offering customizable solutions and accessible resources for every step of a business transaction.
The Right Choice for M&A Partners
We’ve developed very specific and customized deal processes in every industry we’ve completed transactions. 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.
Investment Criteria
With 40 years of experience, S&P Capital Partners delivers efficient and trustworthy M&A services to businesses in the lower middle market ranging up to $150M in enterprise value.
$1m+
Target SDC
<$150m+
Target Revenue
15+
Employees
Selling a business is stressful under the best of conditions and the way you managed the process kept my stress low. You handled delicate situations with grace and made the whole process occur far quicker than I had ever imagined.
Business Owner at Recycling Plant & Materials Recovery Facility
Southeastern US
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
Put S&P Capital Partners on Your Side
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.