Lower Middle-Market Niche Focus
SEP is differentiated from many private equity investors in its unique pursuit of compelling niche opportunities. The professionals of SEP constantly evaluate industry dynamics to unearth high potential market segments that are often overlooked by other investors. We further leverage the combined knowledge of our CEO partners and our professional networks to identify rapidly-growing emerging market sectors.
Niche Market Traits
- Not listed under any broad SIC code
- $100-$250MM in total revenue yet part of a broader $1B+ market
- 20-30 industry participants, mostly "mom-and-pop"
- Fragmented with no dominant leader
- Strong underlying growth fundamentals
The various niches of our target business services markets - over 10,000 of them - offer a broad and diverse universe of attractive investment opportunities, with over 35,000 private companies generating $2-$15MM revenue. Many companies in this space possess the potential for market share gains and rapid growth, but lack access to the management resources, capital, and strategic guidance needed to realize their full potential. SEP offers these small business owners the ability to quickly and confidentially close a transaction on favorable terms, often without a protracted and disruptive investment banking auction. Post-acquisition, together with our CEO partners, we invest in the people and systems necessary to drive above-market growth and margin expansion, creating industry leaders in the process.