Our Approach
We are known for our transparent and founder-friendly approach to M&A
Introductory Meeting
We understand that for most sellers, this is the first and last major acquisition process they go through. That's why we start with a casual conversation to get to know each other. No pitch deck or prep needed. We’ll discuss the company's journey, your goals, background, company overview, and what a successful outcome looks like.
Signing an NDA
As a next step, we’ll sign a mutual non-disclosure agreement to ensure everything you share is kept confidential. This protects your financials, customers, IP, and any sensitive materials.
Data Sharing
You send us data or a confidential information memorandum with detailed info about your company. This often includes financials, product overview, team structure, market position, and customer metrics. At a minimum, we would need (1) three years worth of financial statements and (2) an (anonymized) customer cohort analysis.
Expression of Interest (EOI) / Letter of Intent (LOI)
We focus on putting as much of the deal structure as we can in the LOI, to help streamline the closing process without any surprises. We sit down and walk you through each and every part of the letter.
Due Diligence
We take a deep look at your business. That includes finances, operations, product, legal, and customer relationships. Our goal is to validate everything we’ve discussed and ensure a smooth transition.
Signing the Agreement
We finalize the share purchase agreement and other legal documents. This includes reps and warranties, employment terms, and any other structures as per the LOI.
Closing
Once everything is signed and approved, we wire funds and officially close. We’ll also work with you on internal or external communications if needed.
Investment Criteria
We look for established, founder-led businesses with a strong foundation and room to grow.
Financial
- $1 million to $30 million in recurring revenue
- Profitable, with positive EBITDA or free cash flow
- Healthy year-over-year growth (5%-40%)
Product
- Strong customer retention and low voluntary churn
- Mission-critical use case within its market
Culture
- At least three years of operating history
- A high-quality team
Frequently Asked Questions
Does Define Capital cut staff after an acquisition?
No. We’re not in the business of cutting costs, we’re in the business of building. We don’t show up with a scalpel, we show up with resources. Your team is not a liability, it’s the engine of the company.
Is it true that private equity only cares about financials?
Not at Define Capital. We care just as much about team strength, founder mindset, product-market fit, and values alignment. We’ve walked away from deals with perfect numbers when the culture wasn’t right. Our diligence goes deeper than clean models. We look for clarity, character, and conviction.
Will I be forced out of my company after the sale?
Not at all. Most founders stay involved, whether that’s full-time operationally, part-time strategically, or through a phased transition. We collaborate on a timeline that makes sense for you and your team.
Aren’t all private equity firms the same?
We’re not a traditional fund. Define Capital was built to acquire and scale B2B vertical SaaS companies. We don’t rebrand, flip, or overhaul good culture. We hold companies long term, invest in people, and operate with a founder-first mindset.
Does private equity mean a quick flip and exit?
Not here. Define Capital isn’t bound by fund timelines or artificial deadlines. We hold companies indefinitely. We’re focused on compounding long-term value, not rushing toward a sale.