Target businesses should have most, if not all, of the following characteristics:
- Proven Business Fundamentals: We buy businesses with proven business models and successful operating track records.
- Selling Motivation: We specifically are looking for “fatigued founders” that are looking to retire, cut back, or move on to their next business opportunity.
- Industry: We prefer recurring revenue product or services businesses and are looking for a business with a strong historical track record and growth opportunity.
- EBITDA Positive: Period. Ideally $250k-$750k annually.
- Management: We do not require management teams to remain in place, particularly owners/managers. However, we are committed to giving each current employee the opportunity to continue to work in the business following its acquisition by NEC. One of NEC’s strengths is its network of capable, technologically-proficient CEOs and senior management who can run, on a day-to-day basis, businesses we acquire.
- Geography: Within two hours drive of Denver, Chicago or Milwaukee.
- Pricing Expectations– We will pay a fair price for businesses we acquire and can be creative in deal structure. Owners should share their pricing expectations with us as we do not wish to spend time evaluating situations where pricing expectations are unknown.
- Confidentiality– We have a long track record of maintaining complete confidentiality.