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, โboringโ 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