Our investment methodology is unique in that it targets companies that are smaller than those typically acquired by private equity companies. Our target companies have between $5M and $50M in annual revenues.
Working with a larger number of smaller companies has significant advantages for the overall investment model, including (A) improved diversification and (B) better purchase multiples.
Our approach allows passive, capital investors to invest in smaller, steady, established, cash-flowing businesses for improved returns without the traditional stresses and “full-time” hard work of actually operating such a company. This allows capital investors to invest in successful small business owner/operators.
We are different!
The Peterson Capital model is different. While we focus on steady growth, our models rely more on proven cashflow in established companies than on requirements for “double-digit” growth. Our methodology relies more on established company stability and financing mechanisms to create similar–if not better–return on investment, but without the “grand slam” or “grow or die” mentality required for typical private equity.
Simply put, the approach is quite different.
Investors may note similarities in the Peterson investment model to traditional private equity but will need to study our approach at a deep enough level to fully understand the nuances of the approach, as it is NOT an “apples to apples” comparison.