Our Firm
Carrboro Capital Corporation provides lower middle market companies with a new ’s marketplace. Through these efforts, we will help management establish a legacy of growth and provide substantial returns to all of our stakeholders.
Partner Focus
Carrboro Capital is looking for companies with senior and mid-level management teams dedicated to preserving profitability and creating future growth opportunities. Our firm will only look to partner with a company in which a majority of the management team will remain in place post-acquisition or where an ideal replacement team has been identified. As our intent is to work shoulder-to-shoulder with management, we will only partner with companies that need and welcome the skill-set and experience our team provides.
Industry Focus
Carrboro Capital seeks opportunities to partner with companies in traditional industries that offer stable, predictable cash flows that may benefit from consolidation, growth capital, an augmented management team, or a new capital structure. While we will consider all traditional businesses, we are especially interested in companies focused on healthcare, niche manufacturing, and business services.
Carrboro Capital will avoid investments in:
- Early stage start-up companies or turnaround situations
- Technology focused companies
Company Focus
Carrboro Capital is seeking to partner with companies located in the Southeast region of the U.S. that have:
- Proven products and services with at least three years of continuous profitability
- Stable or growing revenues with EBITDA between $1 and $5 million
- A leadership or growth position within a fragmented regional market
- A large, diversified customer base providing recurring revenues
- Low to moderate capital intensity
Our Process
Carrboro Capital will evaluate every investment opportunity on its own merits and will work with management to design a plan to create value and predictable growth in both revenue and free cash flow. Our plan will include the following steps:
Create an appropriate Deal Structure
Our process in acquiring a company is to partner with the existing management and owners to create an uncomplicated, effective continuity plan wherein we create long-term value for all stakeholders. Our financial backing allows us to remain flexible in our approach, optimizing all components of a deal to meet owner needs and create incentives for the management team to share in future success.
Develop an achievable Growth Plan
Working in partnership with the management team, Carrboro Capital will develop a strategic growth plan that protects the core business while taking advantage of new opportunities. As part of that plan, the joint team will ensure adequate investment in the operations and personnel training as required to achieve that plan.
Maintain a long-term Perspective
As a non-traditional investment firm, our horizon is not constrained by the typical limitations of a private equity fund. Consequently, we are willing to invest the time and energy required to achieve extraordinary results for our stakeholders over a longer time horizon.
Our Advantage
While our management team is willing to assume interim, project-based, or full-time roles within a partner company for as long as it takes to achieve success for our stakeholders, our strength is in working with management teams to grow the core business and to provide the capital structure needed to achieve long term objectives. We can also leverage our extended network to augment an existing team or provide appropriate counsel as needed.