What types of investments does Pracinco make?
We invest in operating US-based companies with $1-5 million in annual owner profits and a 3-year history of profitability.
What does Pracinco not invest in?
We are people-first, industry-agnostic investors, with a few exceptions. We're not interested in capital-intensive companies, such as oil, gas, or natural resource exploration, real-estate, or heavy manufacturing.
Where does the money come from?
We invest our own capital.
How much does Pracinco invest?
Generally $5-50 million per company.
How does Pracinco value a business?
In most cases, our valuations are based on a multi-year blend of the cash flow the business generates for owners (pre-tax net earnings). In some cases, we value businesses based on an industry standard such as recurring monthly revenue ("RMR") or annual recurring revenue ("ARR"). Growth rates and profit margins are the two key factors in determining the multiple of earnings we will pay, however both quantitative and qualitative factors are considered.
How long does Pracinco hold its investments?
We aim to buy businesses that we can invest in and grow through decades. Ideally, our transition occurs when the next generation is ready to take the company over. We do not acquire with the intent to "flip" the business.
Who will "run" the business when Pracinco invests?
We take a customized approach to each opportunity. In some cases we acquire companies with proven, established leadership in place; and in others, we draw on our network in coordination with the seller to recruit new leadership that fits the company's culture and opportunities.
How long is the acquisition process?
From the time a letter of intent is signed, closing and funding generally occur within 60 to 120 days depending on complexity and availability of information.
We invest in operating US-based companies with $1-5 million in annual owner profits and a 3-year history of profitability.
What does Pracinco not invest in?
We are people-first, industry-agnostic investors, with a few exceptions. We're not interested in capital-intensive companies, such as oil, gas, or natural resource exploration, real-estate, or heavy manufacturing.
Where does the money come from?
We invest our own capital.
How much does Pracinco invest?
Generally $5-50 million per company.
How does Pracinco value a business?
In most cases, our valuations are based on a multi-year blend of the cash flow the business generates for owners (pre-tax net earnings). In some cases, we value businesses based on an industry standard such as recurring monthly revenue ("RMR") or annual recurring revenue ("ARR"). Growth rates and profit margins are the two key factors in determining the multiple of earnings we will pay, however both quantitative and qualitative factors are considered.
How long does Pracinco hold its investments?
We aim to buy businesses that we can invest in and grow through decades. Ideally, our transition occurs when the next generation is ready to take the company over. We do not acquire with the intent to "flip" the business.
Who will "run" the business when Pracinco invests?
We take a customized approach to each opportunity. In some cases we acquire companies with proven, established leadership in place; and in others, we draw on our network in coordination with the seller to recruit new leadership that fits the company's culture and opportunities.
How long is the acquisition process?
From the time a letter of intent is signed, closing and funding generally occur within 60 to 120 days depending on complexity and availability of information.