EBITDA: $500k – $5.0M
Prefer companies with 10%+ EBITDA margins
Focus on Western U.S.
Strong emphasis on the Pacific Northwest
Strong cultures focused on building great teams and delivering superior customer service
Generally, we prefer opportunities with continuing management and senior leadership, but we are also happy to consider an investment in which management and manager/owners are transitioned out over a reasonable time period.
Attractive compensation programs and incentive-based options for owners and/or senior managers are an integral part of our investment philosophy.
Preferred Investment Structure:
Skylight strives to keep the structure simple for the Sellers while aligning incentives for the team and management. We do this by utilizing the following elements when structuring investments:
- Cash payment/investment for the Seller
- Rollover equity (if desired) for owners/managers seeking to maintain an ongoing ownership stake
- Seller debt (when 3rd party debt is unavailable or cost prohibitive)
NOTE: We do not use earnouts as they often create tension with the Seller and misalign incentives
We are industry agnostic and this remains one of the least-critical deal evaluation parameters at Skylight. Management and specific business characteristics will always serve as the primary metric for judging potential opportunities.
That said, Skylight does have particular expertise in the residential/home service space:
- Pest Control