Episode 04 of The Investor Series is live. Riccardo Termini sits down with Russ Lazaruk, portfolio manager at NCP Capital Partners, a family office headquartered in Victoria, BC that began as a single family office and has grown into a multi family office.
Buy and build
NCP is a direct deal only shop and prefers a majority position, with management keeping part ownership. It looks for established, profitable companies, generally bought from their founders, with $3 million to $6 million of EBITDA, then grows them organically and merges in complementary businesses. One wear parts manufacturer bought about seven years ago has since absorbed about ten more companies.
How the deals are structured
Companies in that range are typically valued at three to five times EBITDA. NCP builds an LP around each acquisition and invites other family offices and a couple of institutions to co invest, with tickets usually starting around $250,000.
Where deals break
Most deals that fall through do so on valuation. For a founder who has run the business for decades, the company is often the retirement plan, and emotion can push the expected price above what the numbers support. "The numbers are the numbers."
Watch the full conversation and read the key takeaways on the Episode 04 page.
About Malahide Partners. Malahide Partners is a capital advisory firm serving technology companies exclusively, headquartered at 124 City Road, London. The firm advises founders, boards and sponsors on equity and debt raises between $1M and $100M and on M&A, working with family offices, funds and institutional investors across Europe, the GCC and North America. Malahide Partners represents the company and runs the process end to end; it is not an investor or a fund manager.
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