We Buy Mature Businesses
01
What We Do
We acquire good businesses (ones with a proven product market fit) and make them better. We either retain the businesses long term or exit where it makes sense.
02
Our Approach
Business owners that have run a successful business for number or years, but are now wanting to step back, are the core set of people we look to partner with. We use automation, AI, and targeted optimization and growth strategies to improve the businesses we acquire.
Our Mission
To increase customer value and shareholder returns by taking good companies and making them great.
About
About Our Firm
We are a private investment group acquiring long standing business in the low to mid market range. We have expertise in strategy consulting, operations management, marketing, and creative growth strategies. We leverage our extensive network or experts and operations professionals to quickly realize outsized returns on our investments. Our acquisitions are funded by a combination of debt, equity, and seller finance.
Venture Capital
Venture capital (VC) isĀ a form of private equity financing provided by firms or funds to startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in terms of number of employees, annual revenue, scale of operations, etc. We are not a Venture Capital firm and we do not invest in Startups.
Private Equity
Private Equity generally acquires long standing businesses with good financials. They look for firms in the $10M to $100M revenue range. The investments are generally funded by accredited or institutional investors. We are not a Private Equity firm. We acquire businesses that are usually too small for Private Equity. There is significant need for investment and operational expertise in the small business space, and that is where we operate.
Stats
Private Equity By the Numbers
Due to high cost of capital, 2023 saw a sharp decline in PE acquisition activity. Deal activity was down 24% by volume and 30% by value compared to 2022. The trickle down effects of this to the low end market (<$1M EBIDTA) is that there are significantly less buyers in the marketplace for smaller businesses. This presents a great opportunity to the buyers that are willing to partner with sellers and put together a creative deal structure.
Cost of leverage in PE
PE deals in '22
PE deals in '23
$T dry power on the sidelines
Key Insights
“Your number one asset is your relationships with your customers. Delivering consistent value and establishing yourself as the pre-eminent advisor is the key to maintaining lifetime customer relationships. Marketing is all about relationship building. “
“Most business owners are Accidental Entrepreneurs (even the successful ones). Although they might have iterated to a product market fit over the years, they haven’t systematically analyzed and optimized every aspect of the business (operations, finance, marketing, etc.) to deliver maximum customer value and derive superior cash flows. This is where the biggest opportunity lies.”
“You should look at the workarounds that your customers are needing to do. It becomes a real source of a lot of Insights. Understand deeply the real job your product is being “hired” to do. Then set about doing that job really well and solving “the whole problem”.
Our Office
13580 Technology Dr.
Eden Prairie, MN 55344, USA
Contact Us
(612) 669-8200
info@convexgrowthfund.com
Office Hours
Mon-Fri: 9am – 5pm
Sat-Sun: Closed