Our Ideal Partner Profile
Below are a few of the key qualities we consider when evaluating whether a business is a good fit for our partnership model. However, we recognize that often the best companies don’t fit nicely into neat boxes – and because we are investing our own capital, we have the flexibility to consider just about anything.
~$1M - $4M Revenue
Recurring
Revenue
Opportunity to Accelerate Growth Engine
Founder-Owned and Operated
B2B
Sales
Best-In-Class Product/Service
Desire to
Partner
Adequate Addressable Market
Our Approach to Partnership
Our model allows us the flexibility to invest in minority or majority positions, depending on the unique needs of the business.
Civitas Investment
Use of Proceeds
Ownership
Management Role
Civitas Role
Holding Period
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$1 million - $3 million
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Buildout of sales / marketing functions or product enhancements
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Add-on acquisitions
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Civitas in minority position with opportunity for additional incentive equity contingent on successful growth / exit outcomes
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Founder retains controlling stake
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Stays in place post-closing
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Civitas assists in recruiting additional talent as needed
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Strategy session post-closing to define 5-year plan for business
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Regular checkpoints to ensure adherence to strategy and monitor operational & financial KPIs
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Ad-hoc meetings related to growth strategy, executive recruitment, specific functional challenges
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Facilitate connections to functional / industry experts in our network
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Provide introductions to potential customers / channel partners in our network
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Ideally 5+ years, but flexible on timing
How We Create Value
We recognize that every business has a unique set of opportunities and challenges – and there is not a one-size-fits-all recipe for success. Below are some of the ways we typically help our partners create value, but by no means is this an exhaustive list.
Strategy
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Work in tandem with you to align on strategic priorities for the business, with clearly defined objectives at key points in time
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Establish a strategic plan and processes to ensure the business is tracking to expectations
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Re-evaluate strategy as needed based on new information or changing business dynamics
Executive Mentorship
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Work with leadership team to establish best practices refined through experience across multiple successful companies
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Serve as a thought partner and provide a helping hand on key business opportunities and challenges
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Coach management team on key leadership traits required at each stage of the company’s growth cycle
Product Enhancements
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Refine product roadmap, including segmenting technology spend as ongoing maintenance vs. new product development
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Model financial impact from product enhancements / additions and use this to determine strategic priorities
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Implement processes to ensure robust information security
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Ensure the company’s intellectual property rights are protected across the organization
Sales & Marketing Engine
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Via testing and various small investments, determine sales model and marketing spend required to optimize leads and closing rates
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Implement systems and processes necessary to measure key metrics and drive these throughout organization culture / comp structure
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Formalize and automate approach so next buyer can clearly see path to future growth
Customer & Product Leads
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Utilize relevant industry and function experts in our network to help refine go-to-market approach
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Provide introductions to potential customers in our network
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Tap into our network of experts in marketing, sales, IT, finance, M&A, operations, and more
Operational Best Practices
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Consider implementing EOS to align vision and goals across the entire organization
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Establish standing meetings (weekly, quarterly, annual) to track progress, resolve issues, and align on goals
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Systemization of core processes to increase scalability, manageability, and profitability
Finance & Accounting
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Ensure company financials adhere to GAAP and that the business is tracking all relevant KPIs optimally
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Implement systems to enable automated operating and financial reporting
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Optimize subscription billing to promote working capital efficiency
Legal Policies & Procedures
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Ensure customer and vendor contracts are optimally structured to create a seamless exit process
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Ensure corporate structure is appropriate and will withstand future buyer due diligence
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Ensure policies relating to employees and contractors reflect market standards
Recruiting & Retaining Talent
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Ensure your business has scalable leadership in place across all key business functions
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Establish commission / equity incentive plans to ensure that the interests of key employees are aligned with yours
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Utilize vendor relationships and market studies to ensure compensation and benefits packages are attractive to potential hires
Synergistic Acquisitions
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Identify add-ons that supplement the organization’s capabilities, product offering, or market position
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Source opportunities through proactive outreach or opportunistic inbound from bankers / brokers
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Negotiate and structure deal, perform due diligence, and provide capital for funding
Optimizing for Exit
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Hire a strong investment banker with relevant deal experience to lead the sale process
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Prepare marketing materials and a data room with key documents buyers will require
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Negotiate offers and definitive documentation to ensure an optimal outcome
ERIK MADSEN
CEO - Home Care Pulse, LLC
"Working with Civitas Growth Partners has been a dream come true. While our business was experiencing modest growth, since they joined, we have experienced 50% growth in revenue and more than doubled our net income. We are having fun and I am experiencing more joy and satisfaction than ever before. Thank you, Chris and Eric for your leadership, confidence, and guidance.”