Does adventur.es buy companies or act as an intermediary?
Adventur.es is a buyer, not a broker, investment bank, or adviser. We offer no services outside of assistance to our portfolio companies.
Where does the money come from?
We primarily finance deals using excess cash flow from our portfolio companies. This means that the vast majority of deals we do are un-levered and involve no outside investors (i.e. Limited Partners).
What types of deals does adventur.es do?
We primarily buy a majority of equity in mature, profitable operating companies.
What won't adventur.es invest in?
We're fairly agnostic when it comes to industry - with a few exceptions. We're not interested in real estate-based (i.e. hotels) or real estate-dependent (i.e. gas stations) operations; oil, gas, or natural resource exploration; independent restaurants; or capital-intensive heavy manufacturing.
How much does adventur.es invest?
We usually invest between $2-20 million in companies that have between $1 million and $10 million of pre-tax net earnings.
How does adventur.es value a business and structure the investment?
We typically pay between 3X and 5X on a multi-year blend of pre-tax net earnings. Companies on the high end of the valuation spectrum have a stable and diversified client base, non-owner management in place and ready to transition, low employee turnover, and a below-average risk profile. Past deal structures have ranged from 100% of the purchase price funded at closing to as little as 25% with each deal customized to the seller's preference.
How long does adventur.es hold its investments?
Our ideal holding period is forever. We don't need to return funds to limited partners (LPs) and never acquire with the intent to "flip" the business. When we buy, we're in it for the long term.
Does adventur.es "run" the business?
Absolutely not. Our model is to purchase companies with quality, established leadership in place, or co-develop a plan with the seller for new management to be installed that fits with the culture and needs of the company.
What does adventur.es require of its portfolio company leaders?
We treat company leaders like we expect to be treated and how we expect them to treat their employees, with candor, respect and thoughtfulness. We aim to support our leaders and help if we can be helpful. We maintain frequent contact with each company, regularly reviewing financial reports, attending strategic planning sessions, and counseling on issues ranging from human resources to business development.
What is it like to be an employee of an adventur.es-held company?
While circumstances vary by company, we maintain shared principles across the portfolio. We encourage long-term decision-making, aim for maximally flexible work environments, and don't tolerate typical office politics. We like things simple and straightforward, allowing everyone to focus on what matters.
How are decisions made?
All investment decisions are made by the investment committee comprised of Susanne Bylund, Brent Beshore, and Emily Holdman.
How long is the acquisition process?
From the time a letter of intent is signed, closing and funding typically occurs within 90 days.
Besides capital, what other value does adventur.es add?
Our role varies greatly from company to company. For most, we're a sounding board, consultants, and accountability partners. We have also helped open satellite offices, recruit hard-to-find employees, acquire specialty services, and form major partnerships.
What might cause adventur.es to walk away from a financially viable deal?
We have a strict no asshole policy. We pride ourselves on being straight shooters and not playing games. We expect the same from sellers. Viable deals in the past have fallen apart due to 1.) intentionally misleading information or material omissions; 2.) a lack of integrity; 3.) personality issues; and 4.) toxic company culture.
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