Frequently Asked Questions
What types of deals does adventur.es do?
We invest in operating North American-based companies with at least a 3-year history of $2.5 million to $14 million in annual owner earnings.
Where does the money come from?
We are currently investing Permanent Equity I, which represents $50 million in committed capital.
What do you mean by "permanent capital"?
Permanent capital means when we invest we never intend to sell the investment. There's no deadline to return the fund. The fund, Permanent Equity I, technically has a 27-year term, with the ability to extend the fund indefinitely.
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 typically invest between $5 million and $75 million in companies that have between $2.5 million and $14 million of pre-tax owner earnings.
How does adventur.es value a business and structure the investment?
We typically value companies based on a multi-year blend of pre-tax net earnings. Companies on the higher 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. Little to no senior debt is used.
How long does adventur.es hold its investments?
Our ideal holding period is forever. We 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 leadership that fits 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 long is the acquisition process?
From the time a letter of intent is signed, closing and funding typically occurs within 60 to 120 days.