Purpose
Our purpose is to provide our partners with the opportunity to participate in the financing of the acquisition of existing private small companies.
Cisneros & Partners conducts ongoing search efforts aiming to identify acquisition targets independently and then raise capital on a deal-by-deal basis, with partners that bring not only capital but also significant operational expertise and strategic insight to the table.
Our approach
We are an investment firm focusing on identifying, acquiring, and operating existing privately-held small companies with an enterprise value between US$2.5 million and US$15 million in the USA, within certain specific geographic areas.
Cisneros & Partners’ principals contribute to this endeavor on one hand by acting as lead underwriters and sponsors, originating deals, evaluating targets, conducting due diligence processes, and by providing active management supervision, levered by their extensive entrepreneurial, operational, managerial and strategic expertise, to ensure acquired companies benefit from strategic guidance and best practices from day one.
Focus sector
We believe the broad residential home services industry’s defensive growth characteristics - moderate insulation from the economic risks (particularly with more non-discretionary services), macro and demographic drivers, and a growing recurring revenue model - will remain highly attractive as we seek to deploy capital into comparatively less volatile categories.
While the category is benefiting from increased technology integration - such as booking payment and customer acquisition processes - the required physical presence to perform the residential service removes the potential for total disintermediation. This local element contributes to the offshore proofing of the industry, providing operators with a high degree of defensibility against exclusively online and out-of-area competition.
Search Strategy
Our search is focused on U.S.-based family-owned private companies with annual revenues between $5 million in and $20 million, that have not raised any outside funding from venture capital or private equity, and meet certain core criteria such as having a sustainable competitive advantage within a growing industry with low regulatory, technological and environmental risk, and having a history of recurring revenue with low customer and supplier concentration.
