“The best way to predict the future, is to create it.”

- Peter Drucker

Pioneering Prosperity

At Successional Acquisitions, our mission is driven by a shared commitment to harness the expertise and financial resources of medical professionals to empower and nurture enduringly profitable small businesses. We recognize the transformative potential that lies within these enterprises and the vital role they play in fostering economic growth and innovation. As such, we are dedicated to deploying our collective knowledge, capital, and passion for entrepreneurship to create a more prosperous future for all.

Specifically Successional

We are a family office equity fund that specializes in leveraged buyouts of mature, small businesses. We look for enduringly profitable small businesses that are growing slowly with recurring, loyal customers. Our acquisitions are not limited by region or industry, simply financial performance. We acquire small businesses with an EBITDA of $500,000 to $2,000,000 on a cash-free, debt-free basis. Small businesses that have proven, stable financials with owners seeking retirement. We use leverage and multiple arbitrage to generate sizable returns to our limited partners.

Our Values

Expertise

We leverage the unique insights, precision, and dedication of our medical professionals to identify, support, and grow small businesses that have a lasting impact on their markets.

Sustainable Profitability

We focus on businesses with a proven track record of profitability, guided by a commitment to long-term sustainability, ethical practices, and social responsibility.

Ethical and Transparent Practices

We uphold the highest ethical standards, transparency, and accountability in all our investment activities, ensuring trust and integrity in our relationships.

FAQs

  • Our investment fund operates in two distinctive phases. It starts with an initial round of funding, allocating a small amount of capital to be used in the search for potential acquisitions. Upon identification and completion of proper due diligence, a subsequent round of funding takes place. This round is comprehensive and is orchestrated to facilitate the acquisition process. The lifecycle of our funds are ten years long, one year for prospect identification, four years of investment, five years of harvesting, and ending with the eventual sale of the asset.

  • Our offerings differ based investment phase. For partners investing in the search fund phase;

    • Initial investment is “rolled-in” at a 50% premium to reflect risk

    • “Preferred return” on initial investment at a minimum annual rate of 6%

    • First investment rights in the identified acquisition

    During the comprehensive funding phase, limited partners will provide 30%-40% total of acquisition cost. In return, profits will be distributed as follows;

    • 65% will be allocated to investors in proportion to their investment

    • 35% will be allocated to management responsible for running the acquired company

  • Upon the identification of a feasible prospect and the meticulous completion of due diligence, the managing searcher will assume operational responsibilities at the business location, overseeing its management and strategic direction for a duration of ten years. He will initially be assisted by the previous owner under the terms of a transitional period for three to six months.

  • The acquisitions are financed through a combination of private equity, bank debt, and seller debt. Usually, it is in the following ratios;

    • 30%-40% SBA Senior Bank Loan

    • 30%-40% Seller Debt Subordinate Loan

    • 30%-40% Private Equity

    Depending on the ratios, this provides a large amount of leverage and lets us receive an IRR of 25% or 4.4x - 5.5x return on investment.

Want to sell your business?

We provide fair pricing to businesses meeting our investment criteria. If you're considering selling your business and believe we're a good fit to carry on your legacy, please fill out the form below to start the process.