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 how involved the current owner is. For smaller, owner-run companies, SDE is usually the better measure. For larger companies with a real management team in place, adjusted EBITDA usually fits better.
These are guidelines. We will look at businesses outside these ranges when the story makes sense: strong recurring revenue, a capable management team, a defensible position, limited dependence on the owner, or a deal structure that works.
Geography
Location
- Preference for businesses located within approximately one to two hours of Erie, Pennsylvania.
- Select opportunities outside this area may be considered when strong local management is in place.
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 are careful about cash flow, valuation, financing, management depth, and how a deal is put together. Every business is different, and we structure each one to work for the seller and for the business after closing.
Deals may involve Nellis Holdings equity, bank or SBA financing, seller financing, and outside equity partners when it makes sense. Outside investors are not part of every deal. That depends on the size and structure of the specific opportunity.
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