We help our operators navigate the technology landscape, allowing them to apply real time technology solutions to their Search journeys and ultimately businesses, helping create the potential for outsized competitive advantages in their industry.
We are looking for the best and brightest
We have long established partnerships with top business schools and business school professors
We have a rigorous screening process to evaluate our candidates
We are looking for a mix of rigor, work experience and academic business excellence
We evaluate the opportunities they bring us
We partner with CEOs on pre-deal diligence
We make ourselves available to our searchers and take a hands-on approach throughout the diligence process
We analyze data rooms, including CIM review, searcher LBO model, customer contracts, and value creation strategy
We will only consider investing in deals that meet our risk and return thresholds (target a gross 35% IRR)
We analyze the market and how the business will fare over time
Investment Committee includes members with years of ETA expertise who live middle market
Independent Next Coast ETA financial model required for all investments, including scenario analysis
Thorough deal memo circulated to the IC, including description of business, deal structure, return potential, analysis of competitive landscape, assessment of value creation opportunities, and a recommendation from the team
Opportunities (both CEOs and potential transactions) discussed weekly
We are looking for the best and brightest future CEOs. We run a stringent selection process of applicant screening to ensure there is a solid fit between our Searchers and Next Coast ETA.
CEO Identification
Initial Interview
Non-Biased Scoring/Ranking System
PPM Review
Additional Diligence
Unit Commitment
Our Searchers find great businesses, at great prices, that have yet to be discovered by the traditional private equity community. We are largely industry agnostic but take a strict approach to key attributes when making an investment decision.
Industry agnostic, business fundamentals focused
Significant recurring revenues (>65%) / solid EBITDA margins (>15%)
History of stable cash flows / low capital expenditure requirements
Avoid distressed or turnaround situations
Non-competitive deals – proprietarily sourced and negotiated
Avg. transaction multiple of 5x to 6x EBITDA (roughly half the buyout industry average)
Proforma business leverage < 3x Debt/EBITDA
