What fits — and what doesn't.
This page is written for owners, not for bankers. The criteria below reflect what tends to produce a clean process and a fundable transaction.
Business criteria
| Criterion | Target range | Notes |
|---|---|---|
| Revenue | $2M – $20M | Businesses above or below this range are occasionally considered; outside it, the financing structure becomes more complex. |
| EBITDA / Owner cash flow | $750K – $4M+ | Normalized earnings matter more than reported EBITDA. Add-backs are reviewed carefully. |
| Industry | Services, light industrial, distribution, specialty trade, healthcare services | Technology-dependent and highly cyclical businesses require more scrutiny. Consumer-facing retail is generally outside scope. |
| Geography | Continental United States | No geographic preference within the U.S. The principal is prepared to relocate. |
| Ownership structure | Single or small number of owners | Fragmented cap tables and ongoing minority partners slow timelines. The simpler the ownership, the smoother the process. |
| Customer concentration | No single customer >30% of revenue (preferred) | Higher concentration considered where contract structure or long tenure provides stability. |
| Staff continuity | Team stays post-close | Businesses where performance depends entirely on the selling owner are harder to finance. A working management layer helps. |
| Reason for sale | Retirement, health, lifestyle, partnership resolution | Clean seller motivation reduces complexity. Distressed situations or forced sales are evaluated case-by-case. |
What helps, what slows, what to expect.
What tends to work well
- Recurring revenue — service contracts, maintenance agreements, subscriptions
- Businesses with a documented process a new operator can follow
- Owners who have 3–6 months to work alongside the buyer post-close
- Clean financials with 2–3 years of tax returns
- Low capital expenditure requirements relative to earnings
- Pricing power — customers who stay based on quality, not lowest cost
What tends to slow a process
- Financials that haven't been tax-prepared or are cash-basis only
- Revenue heavily dependent on one relationship the owner manages personally
- Pending litigation or unresolved regulatory issues
- Multiple owners with diverging expectations on price or timeline
- Real estate entangled in the operating entity
- Seller unwilling to carry a note or accept any earnout
Typical steps from first call to close.
A typical transaction takes 4–6 months from signed LOI to close. The steps below reflect how Old Brookewood Capital operates, not an industry average.
Introductory call
20 minutes. Chris explains how the fund works. The seller shares basic background on the business. No financials required.
NDA & preliminary review
A mutual NDA is signed. Chris reviews 2–3 years of financials, a summary of operations, and customer / employee structure.
Site visit
Chris visits the business in person. This is a working session, not a formal presentation. Employees do not need to know the purpose of the visit.
Letter of Intent
A non-binding LOI outlining price, structure, and exclusivity period. Chris aims to have an LOI on the table within 30 days of first receiving financials.
Diligence
Focused and efficient. Requests are batched and prioritized. Chris manages the process directly with advisors — the seller is not asked to repeat information.
Close & transition
A transition plan is agreed on during diligence, not after close. Length and structure depend on the business; seller availability is factored in from the start.
Questions about fit?
A quick call is the fastest way to find out whether a conversation is worth continuing. No obligation, and everything is confidential.
Contact Chris