The companies that we normally acquire are too small for Private Equity Groups which focus on buying middle-market companies ($20M+ in Revenues & $2M+ in Net Earnings) and too big for most individuals who generally do not have the resources or risk tolerance to buy this kind of business without economic or management support.
In a recent article in Forbes Magazine, over the next 2 decades, the Baby Boomer Generation (Individuals born from 1944 to 1964), will transfer over $30 Trillion in wealth to the next generations. Due to its position in the marketplace, Capital Beez is uniquely positioned to acquire some of this wealth that will be transferred in the next 20 years. Our aim is to buy a minimum of 100 companies in the marketplace we serve in the next 7+ years.
Although the companies we are acquiring are solid and well-established businesses, there are inherent downside risks that may come to fruition if an acquirer is not careful, particularly if an acquirer cannot duplicate the managerial ingredients that the previous owner utilized to operate a successful business. Capital Beez’ strategy for managing downside risk is to diligently apply the Business Empire Builder Methodologies from doing Full Financial Due Diligence, going through Legal Due Diligence to Leverage Buyouts. This enables us to not only decrease the potential risk but also to pinpoint the ways that the business can be continuously improved post-acquisition.