Our Focus
Wright Equity Partners actively pursues well-established service companies in the lower middle market. We are particularly interested in profitable companies with predictable cash flows and sustainable competitive positions in growing industries. We are not interested in substantial turn-around situations or early-stage companies.
Investment Criteria
Attractive opportunities will satisfy many of the following criteria:
Industry
- Large and growing industry
- High degree of fragmentation among market participants
- Limited seasonality or cyclicality of services, revenues or labor
- Minimal regulatory risk
- Low-to-medium technology risk
Company
- Strong reputation with at least three years of continuous profitability
- Leadership or growth position within industry or market
- Recurring revenue streams with low customer concentration
- Moderate initial and ongoing capital intensity
Financial
- Transaction values up to $50 million
- Revenues between $5-$50 million
- EBITDA of $2-$10 million
- Healthy EBITDA margins (at least 15%)
- Strong balance sheet with low debt
Management
- Owners seeking to exit business, but willing to participate during transition period
- Experienced and driven middle-management with solid employee relations
Geography
- Eastern United States, although our focus is on the southeast US
Investment Horizon
We acquire and grow solid businesses that create lasting value and we understand the commitment, effort and patience required to achieve this end. We are led by business owners and operators and are not constrained by many of the traditional private equity holding-period limitations.