info@valleycovecap.com

West Palm Beach, Florida

Valley Cove Capital Search Fund Logo

Acquiring and Operating Privately Held Companies

Valley Cove Capital is a search fund set up to buy and grow a small to medium sized business.

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Business Type

Privately held companies in the United States looking for a sale and change of control after short transitionary period.

Financial Characteristics

ASmall to Medium Sized business with over $5 million a year in revenue and over $1.5 million in seller’s discretionary earnings.

Industry Preference

Scalable B2B businesses with pricing power, including healthcare services, specialty manufacturing, and software.

About Valley Cove Capital

Entrepreneurs & Investors

Here is what we are looking to do.

Grow Your Business

You have built a great business, we want to grow it.

Preserve Your Legacy

This business is your identy, we want to protect it.

Maintain Employees

You couldn’t have done alone, we need your team.

How It Works

Our Process

Selling and giving up control of your business can seem like a daunting process. We try to make it easy and transparent for you.

Introductory Call

We will spend 30 minutes on the phone hearing your story and learning about your business.

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Research

We will sign NDAs and begin to do some preliminary due diligence into company documents and customers.

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Preliminary Offer

We will send you are Letter of Intent (LOI) with some initial terms to purchase your business, the terms are not final.

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Due Diligence

If our LOI is acceptable, we will have an in person meeting, tour the business, and begin a deeper dive into financials.

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Closing

After due diligence, we send a final closing offer. If agreeable, we sign a final Purchase and Sale Agreement.

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Transition

We need your experience and guidance for 3 to 12 months of transition working with the new CEO of your business.

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FAQ

General Questions

Some frequently asked questions.

What is a Search Fund?

A search fund is an investment vehicle through which an entrepreneur raises capital from investors with the goal of acquiring a company in which they wish to take an active role in its day-to-day management.

Why wouldn’t I sell to Private Equity or a Strategic Acquirer if they’re offering more money?

Private Equity funds have a defined timeline to return their funds to investors, and so they aggressively cut costs, including laying off employees, add debt, and off shore jobs and production. A search fund has a long term growth perspective.

Considering Retiring Without A Success Plan For Your Business?

When it comes to family owned business, very frequently your children have different plans for their own future and professional careers. In such circumstances, business owners might not have an heir interested in carrying on their family legacy. The general wisdom is to start to think about an exit sooner rather than later.

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Our Latest Updates

Articles & News

Get our explanations and latest perspectives on business trends, search funds, and valuation creation.

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    Unlock Tax Efficiency with 351 Exchanges

    A Section 351 exchange under U.S. tax law lets you transfer assets like stocks to a corporation (e.g., a new Exchange-Traded Fund, or ETF) in return for shares, without triggering taxes on gains or losses—if you meet the rules. How it Works with ETFs: Key Rules to Know: Why It Matters: This approach can save…

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  • A Competitive Moat

    A Competitive Moat

    A business’s moat refers to its ability to maintain the advantages that are expected to help the company stay ahead of industry rivals and maintain excess profits into the future.  Traditionally these are deeply ingrained benefits like owning a great deal of intellectual property, enjoying a lower cost of capital, a network effect, and/or brand recognition.…

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  • Top Line Value Creation

    Top Line Value Creation

    There are two ways to increase the value of a company, grow the top line and shrink the bottom line.  Increasing sales to generate revenue and growing the top line increases value far more than cutting costs.  Operational efficiencies are important and lead to better cash flows, but look at any financial model of a…

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