Private Equity Partners for Business Services Companies

Pinnacle Equity Capital

Pinnacle Equity Capital is a private equity fund focused exclusively on investing in management buyouts of business services companies.  Pinnacle's unique executive-driven investment model involves partnering with a proven business services CEO first, and then working with the CEO to acquire an attractive business services company.  Pinnacle makes minority interest investments in acquired companies, and brings in larger private equity groups through its affiliated intermediaries Pinnacle Investment Bank and Pinnacle CEO Recruiters  to provide large, controlling interest investments in acquired companies.  Pinnacle is one of the only private equity funds focused exclusively on investments in business services companies.

Pinnacle Equity Capital's investment strategy is to invest in transactions where: (i) a private company is under-managed or “under the radar”, (ii) new management is able to improve the operational performance and implement a successful growth plan, and (iii) after a company has achieved critical mass and demonstrated strong growth and margins, a company is attractive to a number of large corporate buyers. 

Pinnacle Equity Capital's investment criteria includes the following:

• The CEO has a strong track record of creating shareholder wealth.

• A solid partnership has developed between the CEO and the existing executives of the company, where the CEO will make an easy transition into the acquired company.

• The company has sales of $20 million or more.

• The company is valued at an attractive valuation relative to its growth prospects.

• The company compares favorably to other companies in the industry on key competitive factors and business metrics, or with new management in place, improvement on key metrics can be made with reasonable ease through operational improvements. 

• The company has a high gross margin, recurring revenue model that is scaleable and allows the company to achieve a leadership position in an industry or market segment.

• Recurring revenue as a % of total revenue is high and the company has a strong backlog.

• The company has the ability to differentiate itself and create a sustainable competitive advantage and does not compete primarily on price.

• Minimal cyclicality, seasonality and customer concentration.

• The industry is $1 billion in size or larger and growing at a sustainable rate of more than 15%, or is highly fragmented, where growth in excess of 25% can be achieved through increased market penetration.

Among the sectors Pinnacle focuses on that it views as particularly attractive for investment are:

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