Oak Stream Partners
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Acquisition criteria

What we look for

Profitable North American companies with $1–15 million of EBITDA across the broad lower middle market, with a special focus on insurance and warranty businesses.

EBITDA

$1–15M

Tier 1, search fund investors: roughly $1–5M. Tier 2, private equity firms: roughly $3–15M.

Revenue

$5–150M

A guideline, not a rule. Margin and quality of earnings matter more.

History

5+ yrs

A consistent record of profitability and positive cash flow.

Geography

N. America

Headquartered in the U.S., Canada or Mexico. No preference on state or city.

Two tiers of capital

Capital matched to company size

We invest alongside search fund investors in smaller companies and private equity firms in larger ones.

Tier 1 · Search fund investors

~$1–5M EBITDA

For lower-middle-market companies, we invest alongside an established network of search fund investors and operators: founders and executives behind companies such as Asurion and Oracle, and funds dedicated to the search fund model.

Meet the investor network

Tier 2 · Private equity firms

~$3–15M EBITDA

For larger companies, we invest alongside institutional private equity firms, which gives us the capacity for larger transactions and follow-on acquisitions.

How our capital works

Industries

Broad lower middle market

We are generalists with deep operating experience in services. We look for businesses with recurring or repeat revenue, a defensible position and room to grow organically and through add-on acquisitions.

  • Business services
  • Financial services
  • Insurance services
  • Tech-enabled services
  • B2B services with recurring revenue
  • Outsourced services
  • Compliance & regulatory services
  • Process & administration services
  • Specialty & light manufacturing
  • Distribution

Special focus area

Insurance and warranty

Where our founder’s operating background runs deepest. We can move quickly and add value from day one.

  • Managing general agents and program administrators
  • Warranty administrators and service-contract providers
  • Protection-plan and extended-warranty companies
  • Claims, TPA and insurance-services businesses
  • Insurance agencies, brokerages and distribution platforms
M&A considerations in insurance & warranty

Transaction types

How we buy

  • Full buyouts and majority recapitalizations
  • Management buyouts
  • Founder succession and retirement
  • Partner and shareholder buyouts
  • Corporate carve-outs

Qualities

Companies we admire

  • Trustworthy, capable leadership and staff
  • Solid employee relations and retention
  • Diversified customer base
  • Identifiable growth opportunities
  • A large, fragmented industry with room for add-ons

Generally outside our focus

Less likely to fit

  • Start-ups and turnarounds without profits
  • Businesses reliant on highly technical licensed expertise, such as medical or engineering practices
  • Capital-intensive sectors such as retail, heavy manufacturing and restaurants

Confidential conversation

Does your company fit?

Our criteria are a guide, not a checklist. If your business is close, call us. We can usually tell you quickly whether there is a fit.

Contact Oak StreamReview our criteria