Philosophy
Investment criteria
Why NBG
PHILOSOPHY
We invest $10 to 150 million in family/founder owned companies in North America with $3 to 25 million of EBITDA and attractive growth opportunities. Our preference is for control (51%+ ownership) or significant minority ownership, but we are highly flexible in structuring transactions.
Unlike a traditional private equity firm, we only focus on a handful of investments at a given time, which allows us to spend more time with our portfolio companies. Also, while we typically plan on a 4-6 year hold period, if need we can remain invested in a company for much longer than most private equity firms.
We do not operate companies day-to-day - that’s for the management team and owners we invest behind. We do, however, work actively with the companies we invest in, particularly around growth initiatives. Whether it’s investing in building a sales force, ramping up marketing spend, or acquiring competitors, we look for opportunities where our firm’s skillset can help accelerate sales.
INVESTMENT CRITERIA
While we do not have a “set of boxes” we are trying to check, we do have core parameters that guide us:
$3 to 25 million of EBITDA in our target sectors: Multi-Unit, Healthcare & Wellness, and Technology & Online
Businesses that are growing and where our involvement can help accelerate their growth trajectory
Majority or significant minority ownership
We have a few core attributes that set us apart from a typical private equity firm:
Limited Portfolio: while some firms have dozens of investments, we are highly selective and keep our portfolio small. This gives us time to actually support each of our companies and makes us more personally invested in their success
Small Team: many firms have large teams with layers of Analysts, VPs, and Partners. You may not even be talking to the real decision makers. Our team is small, enabling quick decisions and meaning you only deal with the founders of our firm.
Growth Orientation: we generate the vast majority of our investment returns by aggressively growing our portfolio companies. After making an investment, a majority of our time is focused on helping to grow revenue and profitability. We only get excited about a business if we believe there’s an opportunity to 2-3x or more the size of a business over the course of a few years.
Deep Industry Knowledge: we perform significant industry research prior to even talking to potential investment targets, which allows us to have insights on how we can help a company grow. We also work closely with a team of Operating Advisors who can serve in strategic board roles or as executives in companies we invest in.
Rolling Up Our Sleeves: our team has deep experience in our target sectors and we also have entrepreneurial DNA. We are always willing to do real work to assist a company’s management team, which can include everything from putting together a long-term strategic plan, creating more robust financial reporting, evaluating M&A, or helping recruit new team members.
Do you want to bring on an investment partner but maintain control of your growing business? NBG’s minority recapitalization strategy may be a compelling option for you. Click here to find out more.