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Our Partnership Criteria

A PARTNERSHIP-FOCUSED APPROACH FOR BEST-IN-CLASS COMPANIES

At NSP, we focus on partnership-based, non-control majority recapitalization and  full-buyout transactions with our management team owners, where we are the First Institutional capital provider.​

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Let's explore our four (4) approaches to Partnerships: 

  • Partnership Criteria

  • Partnership Dynamics 

  • Industry & Sector Focus - Healthcare Services and Business Services

  • Deal Structuring Characteristics 

Partnership Criteria
Flexible, Patient Capital for Best-in-Class Businesses

We seek to Support, Propel, Steward,  and Govern our partnered companies to its' Next Level. We approach partnerships with Flexibility and Patient Capital, and seek to partner with and invest in growing, best-in-class lower middle market companies, that exhibit the characteristics of growing into a market-leading company. 

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While every investment and partnership is different, we look for companies that fit the following parameters:

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$10 million - $100 million

Revenue
 


$2 million - $10 million

EBITDA (or Cash Flow)
 


$10%+

Healthy Net Margins

PARTNERSHIP DYNAMICS

The Foundation of every successful partnership  
starts with the right Partnership Dynamics 

Partnership Dynamics

USA-based businesses
Resilient & Mission-Critical businesses
Strong owner and non-owner management teams

Highly entrepreneurial, family-owned and founder-led businesses

USA-based businesses, with a focus on Southeast, Midwest, and Mid-Atlantic

Businesses with long-term growth prospects with recurring or reoccurring revenue

Resilient & Mission-Critical businesses with sustainable competitive advantages

Strong owner and non-owner management teams seeking long-term partnerships

We believe in Great Partnership Dynamics beyond just providing capital. 

At Next Steward Partners, we believe that successful partnerships are built on the foundation of the right company ingredients, dynamics, and culture that are in place today. 

With the right dynamics in place, we prefer to work with entrepreneurs, founders, families, and management teams who exhibit the following characteristics: 

(1) Closely-held businesses
(2) USA-based businesses 
(3) Long-term growth prospects
(4) Resilient and Mission-Critical business
(5) Solid teams in place

 

INDUSTRY & SECTOR FOCUS

A Sector-Focused and Thesis-Driven strategy
drives specialization and expertise for our partnered companies

Healthcare Services

Healthcare 

Healthcare Services

  • Behavioral & Mental Health

  • Home Health & Homecare 

  • Outsourced Support Services

  • Continuing Education & Training

Healthcare Tech-Enabled & Software

  • Payer Tech & Services

  • Healthcare IT & Software

  • Employer Services​

  • Specialty Networks

Medical Products & Distribution

  • Medical Products

  • Specialty Distribution

  • Diagnostic Products & Services

  • Contract Manufacturing

Life Sciences & Pharma Services

  • Clinical Lab Services

  • Life Science Regulatory Affairs

  • Outsourced Pharma Services

Business Services

Business Services

Industrial Services

  • Facility & MRO Services

  • Testing, Inspection & Compliance 

  • Automation, Motion, Flow Control

  • Safety & Engineered Components

Critical Infrastructure Services

Critical Infrastructure Services

  • Water & Wastewater Services

  • Digital Infrastructure & Data Center

  • Critical Repair, Maintenance, Upgrade & Deployment Services

Utility, Telecom, and T&D Services

Power & Utilities

  • Utility, Telecom, and T&D Services

  • Vegetation Management 

  • Energy Management Services

  • Specialty Services

Testing & Analytical Services
Waste Management & Environmental Services

Waste Management & Environmental

  • Waste Management & Recycling

  • Environmental Services

  • Testing & Analytical Services 

DEAL STRUCTURING CHARACTERISTICS

The Heart of the Deal is where partnerships can be
mutually-structured in a flexible way for both parties

We provide our partnered companies that opportunity for flexibility, where our private ownership and long-term view allows us to structure partnership transactions in many forms...

that's Suitable, Friendly, and Mutual for both parties. 

Let's briefly explore four (4) key deal components:

(1) Retained seller equity
(2) Seller financing
(3) Earn-out provisions
(4) Employment agreements


 

Key Deal Components:

Retained Seller Equity
Allows the Sellers to retain a minority stake in the company, while sharing in the success of the company when the company is sold at a higher value in the future (aka "second bite of the apple").

Seller Financing
Allows the Sellers to receive a monthly, or quarterly payment plus at a fixed-rate interest rate, in exchange for the Buyer financing a portion of the purchase price of acquisition.

Earn-out Provisions 
Allows the Sellers to receive a future payment of the value of their business (above the negotiated purchase price), based on a performance-based approach. Earn-outs can help align the interests of the Buyer and the Sellers. 

Employment Agreements
Allows the Sellers and management team members to stay engaged and aligned in the transition and/or continual operation of the business. 
 

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