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by entrepreneurs
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Our Approach

Providing future CEOs with the capital, technology, and operational support needed to create exceptional outcomes

Providing future CEOs with the capital, technology, and operational support needed to create exceptional outcomes
We invest in themes. Not sectors.

The Next Coast Advantage: Digital Transformation

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.

The Next Coast ETA Process

CEO/Entrepreneur Diligence

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

Deal Diligence

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)

Market Assessment

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

What We Look For

We invest in themes. Not sectors.

Searcher Criteria

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

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Investment Criteria

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