Acquisition Criteria
The Businesses We Look For
We are looking for established, privately held businesses where hands-on ownership can keep things steady and help the company grow. The numbers below are guidelines, not hard lines.
Company Size
Scale & Profile
Revenue
Generally between $2.5 million and $25 million.
Adjusted EBITDA or SDE
Generally between $650,000 and $3.5 million, depending on the company's management structure and the current owner's operational involvement.
Ideal Initial Acquisition Size
Approximately $750,000 to $1.5 million of adjusted EBITDA or SDE.
Employees
Approximately 5 to 100 employees.
We use adjusted EBITDA or SDE depending on the size of the business and the degree of the current owner's involvement. For smaller, owner-operated companies, SDE is generally the more meaningful measure. For larger companies with an established management team, adjusted EBITDA is typically the better fit.
These figures are guidelines rather than firm limits. We will review businesses outside these ranges where the fundamentals support it, including strong recurring revenue, a capable management team, a defensible market position, limited dependence on the owner, or a workable transaction structure.
Geography
Location
- Preference for businesses located within approximately two hours of Erie, Pennsylvania.
- Select opportunities outside the preferred radius may be considered when capable local management is in place and the business does not require daily on-site ownership.
Industries
Industries of Interest
- Niche business-to-business services.
- Asset-light service companies.
- Recurring-revenue or repeat-revenue service businesses.
- Operationally oriented companies where leadership, systems, and execution can create value.
Focus
Areas of Particular Interest
Ownership
Ownership & Transition
- Established privately held businesses with stable operating histories.
- Founder-owned or owner-operated companies.
- Family businesses preparing for succession.
- Owners considering retirement or a gradual, tailored transition.
- Majority acquisitions or full buyouts.
- Long-term ownership orientation, not a quick resale or fund timeline.
Characteristics
Preferred Characteristics
- Strong customer relationships and a well-regarded market reputation.
- Recurring or repeat revenue.
- Documented financial performance.
- Existing management or key employees preferred.
- Defensible market position.
- Opportunities for operational improvement and sustainable growth.
- Limited dependence on a single customer, supplier, or relationship.
Transactions
Transaction Structure
We evaluate cash flow, valuation, financing, management depth, and transaction structure with equal care. Every business is different, and each transaction is structured to work for the seller and for the business after closing.
Transactions may use an appropriate combination of Nellis Holdings equity, responsible bank or SBA financing, seller financing, and outside equity partners when appropriate.
No single financing method is promised for every acquisition. The final structure is tailored to the specific business and seller, and depends on valuation, cash flow, management depth, financing availability, and the seller’s objectives.
Not a Fit
Generally Not a Fit
- Restaurants.
- Traditional retail.
- Auto dealerships.
- Highly seasonal consumer businesses.
- Businesses with substantial regulatory, environmental, or licensing requirements outside our experience.
- Heavily unionized operations with limited operating flexibility.
Confidential Inquiries