Investment Approach
Partnering with Lower Middle Market Businesses
Brass Ring Capital is a specialized private investment firm dedicated to investing in value-added partnerships with established, privately-held businesses in vital sectors of the economy. Our committed capital, deep resources, and strategic guidance are specifically designed to support ownership transitions, unlock growth potential, and drive sustainable value.
Flexible Transaction Structures
Brass Ring Capital provides flexible capital solutions to meet a variety of ownership transition and growth needs. Our investment approach is adaptable to the specific circumstances of each business and owner.
Private Company Sale (Buyout)
We act as the buyer when owners seek to sell or retire, partnering with incumbent or new management for a seamless transition.
Private Company Recapitalization
For owners seeking liquidity, a recapitalization allows for retaining significant ownership and operational control to enable future growth.
Family Succession
Providing capital and partnership to family members for ownership buyouts, keeping businesses within the family while providing liquidity.
Divestiture
Strategic acquisition of non-core business segments and integrating them into our portfolio for optimized growth.
Acquisition of Competitor (Add-On)
Partnering with portfolio companies for strategic competitor acquisitions, driving market consolidation and increased competitive advantage.
Growth Financing
In select situations, facilitating expansion for companies experiencing rapid growth, helping them scale efficiently to their next phase.
Your Path to Lasting Value
Brass Ring Capital supports small business evolution through strategic partnerships. We provide expertise and capital for owners, managers, and advisors navigating pivotal moments and seeking growth. We go beyond capital, providing the expertise and resources to ensure your objectives are met and your business’s legacy thrives.
Investment Criteria
We actively seek opportunities within companies that align with our core investment criteria, identifying businesses where our capital and expertise can generate the most significant impact.
EBITDA
We target U.S.-based businesses with $1-5 million of EBITDA, with a primary strike zone of $1-3 million of EBITDA. We also consider add-on acquisitions of any size.
Sectors
We are industry-agnostic with a preference for business services, diversified industrials, specialty manufacturing, and overlooked niche markets. We acquire established companies in basic industries.
Customer Concentration
We prefer businesses with diversified customer bases, with no single customer accounting for more than 40% of total revenue.
Margins
We look for robust financial health, characterized by gross margins greater than 25% and EBITDA margins exceeding 10%.
Management
Continuity is preferred, but not strictly required. We seek cultural receptiveness to growth and change, cultivating a robust network of management talent.
Location
Nationwide, with a strong focus and network within the Midwest & Southeast regions of the United States.
Ready to Connect?
Have questions about our investment approach or a potential partnership for your business? We’re happy to hear from you.