Middle-Market

Sydney Capital is seeking to purchase 1 to 3 businesses in the Lower Middle Market (EBITDA in the $3 – $10mm range). We can also facilitate the purchase of your business at the upper end of Middle Market ($15 – 50mm EBITDA).

Basic Criteria

We like prudently run stable companies with free cash flow and proven management. We also like basic businesses with at least several years of steady growth, but not rapid growth. Character and ethical management are requisite thus extensive reputation research and vetting is done. We pay slightly below market value for the company that needs a quick process but stay with you as a good partner to management, given a mandate of purchasing at least 51% or more of the consolidated operation. We entertain serious sellers only. Our investment timeframe is not limited. We work to grow book value at a reasonable pace with no defined exit plan.

Some of the sectors we like for purchase are transportation, staffing, manufacturing, financial services, insurance related, health care related, commercial real estate, and construction. We do not invest in pre-revenue companies or pro-forma earnings power. You must already have revenue and earnings for several years. We will also look at companies in distress with a clear path to recovery. If you are a seller and would like to pitch such a position, please email a one-page pitch to: kfikes@sydneycapital.us. Pitches more than one page will not be read.

Geography

Our goal is the purchase of a business within a 500-mile radius of Knoxville, Tennessee. Middle Market companies are larger than small businesses but smaller than big businesses that account for the middle third of the U.S. economy’s revenue.

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