Pacific Equity Group is a private equity firm dedicated to making investments in leading companies with solid fundamental characteristics. Our objective is to acquire businesses that have the potential to achieve superior growth in earnings and value.
Our principals are seasoned businessmen with extensive private equity experience both from the investor side and the management side. We have built, grown, and sold numerous businesses over the years and take pride and enjoy helping businesses grow and achieve their goals while creating shareholder value.
Pacific Equity Group is able to make prompt investment decisions utilizing proprietary funds, and does not depend on outside investors, lender participation, or approvals.
Investment Criteria
Whether a corporate carve-out or a closely held business, initial platform or strategic add-on acquisition, Pacific Equity Group focuses on acquiring smaller profitable companies with enterprise values between $10 million and $50 million. We believe this market segment is the most under served and represents an area where we can make the most contribution as a partner. After determining that an investment opportunity fits within a developed theme and industry focus, Pacific Equity Group evaluates certain key company attributes as compared to our core investment criteria:
- Developed, defendable, and understandable core business model
- Favorable longer-term organic growth dynamics or strategic acquisition opportunities
- Identified opportunity for Pacific Equity Group to add value strategically, financially, and operationally
- Ownership control
- Positive cash flow between $2 million and $10 million
Industry Type:
Pacific Equity Group invests in established businesses in a broad range of industries engaged in the manufacturing and distribution sectors of the economy. We do not, however, invest in start-ups, early stage venture capital, real estate transactions or in companies that develop rapidly changing technology.
Company Size:
Pacific Equity Group makes stand-alone "Platform" company acquisitions of businesses with annual sales between $10 million and $50 million and annual operating profits between $2 million and $10 million. "Add-on" acquisitions to existing portfolio companies are not subject to sales and earnings minimums, but rather are evaluated on the merits of their strategic fit with our Platform businesses.
Other Financial and Operational Attributes:
Pacific Equity Group prefers companies that have a defensible position in a growing market, stable and predictable cash flows, recurring demand for their product or services, a diversified customer base, sustainable operating profit margins in excess of 15%, low risk of product obsolescence and continuity of a committed management team.
Investment Amounts:
Pacific Equity Group investments range from $5 million to $40 million per transaction. We support our portfolio companies in executing strategic growth plans through expansion or completion of add-on acquisitions.
Geographic Focus:
Pacific Equity Group invests in domestic companies, with a preference for companies located in the Western United States.