USHER IN
THE SPRING
Spring is the time of new beginnings, of growth awakened, of limitless potential. This is the embodiment of what PennSpring Capital brings to business owners and industry executives alike. We believe that care and commitment are as central to success as are discipline and diligence, and our track record supports this unique people-forward approach to private equity.
The Resources to Close. The Support to Scale.
Lancaster, Pennsylvania-based PennSpring is specifically engineered to assist companies that are not quite ready for institutional capital. Specifically, we specialize in elevating companies with EBITDA of $750,000 - $5 million to the next tier of $5 million and beyond - and thus positioned for an institutional audience. With a robust rolodex of ways to finance transactions, including direct investment, we can close quickly.
Through this process we give company owners their desired measure of liquidity and, perhaps more importantly, "a second bite at a larger apple". With the potential exception of retirement scenarios, we strongly prefer that the entrepreneur "rollover" a meaningful stake (20 - 45% of the company). PennSpring principals invest and provide critical advisory services and strategic connections, but we do not meddle in the day-to-day operations of the company…we align with expert management for a reason.
Investment Criteria
$10 - $50 MM
$750K - $5 MM
$3 - $30 MM
>50%
Geography
Revenue
EBITDA
Transaction Size
Required Ownership
Key14™
The 14 counties of the Keystone State’s South Central region are renowned for their business ingenuity, innovation and diligence – as well as an unrivaled commitment to community. We strive to both echo and reward this set of ideals at PennSpring. With roots tracing to Lancaster’s founding, we are proud to have earned our place as the PE/M&A solution for business owners in the Key14™.
PennSpring is also open to exploring opportunities in other geographies that share a similar ethos and meet our investment criteria.
Common Company Characteristics
PennSpring targets companies with the following characteristics:
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Committed and passionate management team willing to work in partnership with PennSpring
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Compelling value proposition with defensible market, customer and product positions
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Solid long-term industry fundamentals (non-cyclical, non-commodity businesses)
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History of consistent, predictable and stable revenue and earnings
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Identifiable organic and acquired growth opportunities
PennSpring Advantages
EXPERIENCED
INVESTORS
EXPERIENCED
INVESTORS
We have a successful track record of investing capital and creating value across a variety of industries and market cycles.
PEOPLE-FORWARD
APPROACH
PEOPLE FORWARD APPROACH
We combine a dedicated team of Operating and Financial Partners with demonstrated transaction expertise to overcome obstacles and capitalize on opportunities.
GROWTH
FOCUS
GROWTH FOCUS
Working in collaboration with management, we strive to build bigger, better companies by executing organic & acquired growth strategies.
PARTNERSHIP WITH MANAGEMENT
PARTNERSHIP WITH MANAGEMENT
We partner with management teams to develop and implement growth strategies, and engineer equity opportunities to reward management for value creation.
CERTAINTY & SPEED TO CLOSE
CERTAINTY & SPEED
TO CLOSE
Committed pools of capital, an efficient investment process, and the ability to fund an entire capital structure are designed to maximize certainty to close.
KEYSTONE CEO
PROGRAM
KEYSTONE CEO
PROGRAM
Our executive-led investment model executed in partnership with seasoned industry veterans to develop market-entry strategies in what we view are attractive sectors
Testimonials
“PennSpring was an incredible steward of our organization. Under their ownership we tripled EBITDA in just 19 months, and achieved an outlier outcome for all shareholders. Moreover, they accomplished this without altering our company culture; even at the point of sale they proved adept at uncovering the perfect buyer – not only strategically, but also as a cultural fit for our Amish/English workforce.”
- Nate Eisenberg, COO Swing Kingdom
"They delivered what they promised every step of the way. Lou was instrumental in professionalizing our business and providing a superior return for all, via our successful exit to Blue Star Sports - a portfolio company of GenStar Capital."
- Jason Frazier, CEO Skyhawks Sports
"The experience of working with Lou and group revolutionized BEAME Lighting. Together with our management team we took the company to the next level, and we could not have been more pleased with our successful exit to 4Wall Entertainment, a portfolio company of Odyssey Investment Partners."
- Brad Clark, CEO BEAME Lighting
Working with PennSpring
Business
Owners
Chances are, you have been down this path before. And it is equally likely that the due diligence process was frustrating enough to call a halt. Not so with PennSpring – as entrepreneurs ourselves, we implement a process that is polite and efficient. We have been on your side of the table, and pledge to treat you and your team as we ourselves would like to be treated. Once investing, we apply this same commitment and care to creating real additional value for you and your team.
If you are a business owner looking for the right partner to help grow your business, please contact Justin Davis.
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Referral
Sources
We have an established network of referral sources, including business brokers, investment bankers, accountants, lawyers, wealth managers, consultants, and lenders who trust us with their transactions. We strive to provide candid and timely feedback and to run an efficient and transparent process. We pay market-consistent buy-side referral fees.
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If you have an opportunity you think would be a fit for PennSpring Capital, please contact us at investments@pennspring.com.
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Industry
Leaders
We take our people-forward approach very seriously. Every PennSpring Capital transaction, strategic plan, and operating initiative begins with a talented team of executives. We work with executives in a variety of ways:
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Full-time leadership positions within our portfolio companies
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Board members or advisors to our portfolio companies
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Operating Partners across a variety of businesses and industries
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KeystoneCEO™ program
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Our executive partnerships may offer the opportunity to generate significant equity upside while playing a meaningful role in building a leading lower middle market company.
If you are interested in working with us in this capacity, please contact Justin Davis.
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Representative Target Industry Sectors
Business
Services
Education
Services
SaaS
Manufacturing
Youth
Enrichment
Alternatively, what we don't invest in.
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Heavily regulated industries
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Commodity-based businesses