Pursuant Capital Calling All Successful Tampa Businesses Ready to Reap the Rewards of Hard Work

Pursuant Capital offers Tampa companies an opportunity to embrace a transition plan steeped in success.

"The timing is not right," they said. "Get a normal job and climb the ladder." "Never go into business with family, it is a recipe for disaster." There were a thousand reasons not to start Pursuant Capital. If the Pursuant Capital team had waited until the timing was perfect and the stars aligned, they'd certainly still be waiting.

But the team took the first step. And can now write this letter to tell the public about the humble progress made so far, not just to describe any grand plans.

The Opportunity

Pursuant Capital was launched on Jan. 1, 2018, to capitalize on a unique opportunity: in the U.S., thousands of established, profitable businesses are owned by baby boomers that need to retire and liquidate. But most of these owners don’t have a transition plan. That’s where Pursuant Capital comes in.

Pursuant Capital is Tampa’s only privately financed search fund in pursuit of a profitable small business to buy and operate for the long term. It sounds fancy and complicated, but it’s not. The company is simply searching for a business with the following criteria to buy and run in a professional manner.

1.    Located in the Tampa Bay area (ideally Pinellas or Hillsborough counties)

2.    Consistent revenues ($2 million-$20 million) and a healthy bottom line ($1 million-$2 million of profit)

3.    Industries that aren’t sensitive to economic cycles, tech advancements or regulatory risks

A Search What?

Thirty years ago, a professor at Stanford invented the “Search Fund” where motivated, highly trained entrepreneurs, backed by experienced advisors and investors, acquire an established business and operate and grow that business day-to-day. Sounds too good to be true, but the proof is in the pudding: a 2016 Stanford analysis of 258 qualifying search funds found the aggregate pre-tax internal rate of return to be 36.7 percent, and the aggregate pre-tax return on invested capital to be 8.4x.

Not New, Just New to Tampa

People ask us: “How is Pursuant Capital any different than private equity?” The answer is that private equity keeps the seller and management team in place after purchasing the business. In the case of our company, after purchasing the business, the team will operate it on a day-to-day basis as co-CEOs and incrementally improve the business over the long run.

Why Pursuant Capital?

Sam Rosati ’s background as a CPA, M&A lawyer and investment banker gives Pursuant Capital the ability to do a deal and manage the quantitative side of a business. Joey Rosati’s operational and entrepreneurial track record will come in handy by providing much-needed sales, marketing and operational expertise. There’s no doubt that their skill sets and personalities are yin and yang, but in the context of the company's business strategy, they are very complimentary.

And Pursuant Capital wouldn’t be here without its “grey hairs”: a team of advisors that are seasoned business operators who have generously mentored the principals through the early stages of their venture.

What Pursuant Capital is Finding

Since launching on Jan. 1, the team has searched far and wide to build a robust deal-sourcing pipeline. Most of the time invested has been spent “pounding the pavement” with meet-ups, conference calls, quick coffees, long lunches and countless other forms of networking with sellers and M&A intermediaries.

Two months in and the Pursuant Capital team is finding its sweet spot: “off the radar” businesses that sell B2B, are highly unglamorous, that offer services (or manufacture products) that sell just as well in both good times and bad. And they are highly profitable. That’s a broad description, but suffice it to say that in Tampa, there’s a huge population of these businesses that are doing very well. Although the majority of such owners are from an older generation, not all of them are.

This is just the first step in what is hoped to be a long journey. Thanks for reading. The Pursuant Capital team will be sure to keep everyone posted on all progress!

Source: Pursuant Capital


Categories: Small Business

Tags: banking, business, small business, small business owner, St. Petersburg, Tampa, Tampa Bay


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About Pursuant Capital

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Pursuant Capital is a Tampa-based, privately-financed search fund in pursuit of profitable small businesses to buy and operate for the long term.

Pursuant Capital
5115 W. Grace St.
Tampa, FL 33607
United States