A portfolio page without realized exits tells a reader almost nothing. Below is every platform acquisition we have made since 2014, including the two where the outcome fell short of our underwriting. Each has its own page with the thesis at entry and what actually happened.
Entry year, exit year, and who bought it. The last two are the ones we would rather not publish, which is the reason they are here.
[Company Ten] lost a customer representing 29% of revenue eighteen months after we bought it. The concentration was disclosed and priced; our error was believing a verbal assurance about contract renewal rather than insisting on seeing it in writing. We changed our diligence process as a result, and customer contracts are now reviewed individually above 15% of revenue.
[Company Eleven] was bought at the wrong point in a cycle we did not read correctly. Investors received approximately their capital back and no more.
Any intermediary or investor is welcome to call the sellers and the lenders on both transactions. We will provide the numbers.
We are active buyers of smaller businesses in precision machining, mechanical services, industrial electrical and facility maintenance. Those transactions typically close in six weeks.
For intermediaries