Acquisition Criteria & Investment Approach

At Revenue Elite, we focus on acquiring stable, well-managed businesses with proven free cash flow and strong teams. Our goal is to preserve what makes each business great while supporting sustainable, long-term growth.

Business Profile

  • Revenue: $1 million to $5 million annually
  • Free Cash Flow (FCF): $200,000 to $1 million annually, calculated as EBITDA minus maintenance capital expenditures and normalized changes in working capital
  • Operating History: Preferably 5+ years of consistent revenue and profitability
  • Ownership: Open to full buyouts, majority recapitalizations, or minority equity investments

Management & Operations

  • Experienced management teams or strong second-in-command leadership
  • Established processes, documented systems, and customer relationships that are not overly reliant on a single owner
  • Owners who wish to remain involved for a transition period or longer, but also open to those ready to fully exit

Revenue Characteristics

  • Recurring or repeat revenue models strongly preferred
  • Low customer concentration (ideally no single customer representing more than 20% of revenue)
  • Demonstrated customer loyalty and retention

Industry Focus

We prioritize essential, โ€œboringโ€ industries with high barriers to entry and opportunities for incremental growth, including:
  • Commercial and industrial services (HVAC, fire safety, specialty cleaning)
  • Niche B2B distribution (industrial supplies, safety equipment)
  • Managed IT and cybersecurity services with existing contracts
  • Specialty healthcare service providers (billing, compliance)
  • Vertical-specific software or SaaS businesses with loyal customers

Deal Structure

  • Seller financing
  • Earnouts tied to performance
  • Retained minority stakes
  • Full buyouts with consulting agreements for owners during a transition

Our Commitment

We are long-term partners who respect your employees, customers, and company culture. Our investment approach emphasizes patience, stability, and sustainable growth โ€” not aggressive restructuring or short-term flips. If you believe your business could be a fit, or if you know of an opportunity that meets these criteria, please contact us to start a confidential conversation.