Private equity financing for succession transactions: our criteria.

The Succession Fund™ invests in outstanding businesses.

The Succession Fund seeks out high-quality businesses that meet the following criteria:

  • Manufacturing, distribution or service sectors;
  • Annual revenue greater than $15 million with identified growth prospects and annual EBIT greater than $2 million, with a history of consistent profitability;
  • Continuing owner-manager partners with a significant equity stake and the majority of their net worth still invested in the business;
  • Executives with the demonstrated ability to manage through positive and negative transitional periods, such as recessions, new product development cycles, capital expenditure programs, key employee changes, and acquisitions;
  • Ability to self-finance expansion and sustaining capital expenditures with a strong balance sheet; and
  • Proprietary technology, products, niche or brands that entrench a position of market leadership, protect gross profit margins, and serve as a barrier to entry to competitors.

The Succession Fund will complete investments of $3 to $8 million to acquire a 35% to 50% equity ownership positions alongside continuing owner-managers. Shareholder agreements will be entered into that set out comprehensive ground rules for governance and liquidity. The Fund will require Board seats at each portfolio company, and will add value by improving capital allocation discipline and strategic planning priorities.

To discuss how we can help, please contact Larry Klar.

The Succession Fund
141 Adelaide Street West
Suite 760
Toronto, Ontario
Canada, M5H 3L5
Phone: 416-867-8090
Fax: 416-367-3895

Argosy Partners' InvestmentsLinks

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When owner-managers want some cash out

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Argosy Partners Brochure: The Succession Fund, Bridge Fund, and Shotgun Fund