Carolina Succession Capital
A North Carolina search fund for industrial companies with $2M to $10M in revenue
Target Business Profile
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Industry
Light manufacturing, industrial services, value added distribution, and supply chain. Some restrictions on medical device companies
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Background
Sustainable market position, historically stable cash flows, $2M to $10M in revenue, and long-term opportunities for growth
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Location
Central North Carolina between Raleigh and Charlotte
Search Fund Manager
William McCall is a North Carolina native with a professional background focused on manufacturing strategy and operations. Most recently William led Xerox’s 3D Printing business unit (Elem Additive) through a restructuring and sale. Previous roles include working as an industrial engineer for a North Carolina manufacturing company and a consultant for Deloitte with a focus defense supply chain. William has a Masters of Engineering Management from Duke University and a BS in Industrial Engineering from NCSU.
What Is A Search Fund?
Closely associated with “Entrepreneurship Through Acquisition” a Search Fund is an investment pool aspiring entrepreneurs use to raise capital from investors in order to identify, acquire, and then operate a company. Compared to venture capital firms which usually target start-ups with high-growth opportunities, search funds instead seek established companies with high-profit margins and proven track records.
Links
Search Fund - Definition, History, How It Works (corporatefinanceinstitute.com)
What Is a Search Fund and How Does It Work? (sequoialegal.com)
Why Sell To A Search Fund?
For owners of small businesses without a succession plan selling to a search fund offers a unique way to preserve your legacy. Selling to a private equity firm can place great strain on your business. Comparatively a search fund led by an early to mid-career entrepreneur will preserve and build on what you have created.
Links
Is a Search Fund the Right Partner for your business - EdgePoint
5 Reasons to Consider Selling Your Business to a Search Fund | White Cedar
Why Invest In A Search Fund?
Search Funds provide an avenue for individuals to invest in mature businesses and achieve strong returns with less risk and a traditional start up. There are 2.34 million small businesses in the USA owned by Baby Boomers approaching retirement age and 58% of them have no succession plan. 75% of these business are profitable and can be acquired at attractive SDE/EBITDA multiples.
Links
Search Funds: A Once-obscure Asset Class Now Worth Getting Excited About - Lexology