A long-term holding company dedicated to buying and building beautiful businesses and stewarding them with exceptional, values-driven leadership.
We have degrees, but we didn’t learn business from a textbook. We learned it from sleeping under the shipping table, having invoices go unpaid and struggling to make payroll. We learned it from making great hires and terrible ones. We struck transformative deals for our companies and signed others that we would never do again. There’s no substitute for experience, and no faster way to gain it than by building something from nothing.
Our respect for our fellow entrepreneurs flows from this experience. We know just how much pain, hard work and risk went into building a company that customers love and keep coming back to.
Having invested in companies, sold companies and raised funding, we have seen the costs of the short-term mindset of private equity and venture capital up close. We wanted to do something fundamentally different. We took our inspiration from some of our personal heroes: Warren Buffett & Robert F. Smith. They have been very open and generous about their recipe for success, but surprisingly few people have tried to replicate it because of the patience and discipline it requires. In a short term world, Buffett & Smith have shown that a long term perspective can be the ultimate competitive advantage.
Following the inspiration of Berkshire Hathaway, we decided to build the company that we would want to buy our own company. One that would hold it forever instead of selling it to the highest bidder. One that would take care of our employees and create opportunities for them to grow wealth if the business grows. One that would mentor our next generation of leaders. One that would give our business the time it needs to grow (or simply stay the right size) at whatever pace is right for it. That company is Masters Equity Partners.
We are looking for small and medium businesses with exceptionally big moats. The world of business is intensely competitive whether you are large or small, and we are not interested in competing on the basis of lowest price. We are looking for businesses that are the absolute best at what they do and make their customers extremely happy. This will typically be indicated by organic sales growth, little to no spending on sales & marketing, and relatively high margins.
The more specific your niche, the more excited we are. The longer you have built your brand and/or reputation, the stronger base we will have to work from.
We are very open to partnering with your management team to buy the business, or buying out one member of a partnership. We are comfortable with more complex situations.
If you are the owner of a business in any sector with at least $500,000 in earnings, 50% gross margins and 20% or greater operating margins, and you believe you meet these criteria, we are interested in learning more about what you have built.
Vice President of Marketing