About
Founded in 2021, Watchtower Capital Partners is a private equity firm that invests in family-and-founder-owned small businesses in the U.S. and Canada.
Watchtower’s principals pride themselves on being reasonable and flexible partners. We do not over-negotiate, we retain all personnel post-transaction, and we offer attractive career paths and compensation packages for employees. A large portion of employees at our portfolio companies have received increased compensation within the first 12 months of our ownership.
Our primary objectives are to facilitate a desirable exit (full or partial) for the seller; foster an attractive career for employees; and leverage our capital, resources, and experience to drive our companies to the next level of growth.
Industry Focus
Consumer Services
Business & Industrial Services
Building Products
Value-Added Distribution
lnvestment Criteria
We are highly selective in the investments that we choose to pursue. Below are the preliminary characteristics that we screen for.
Enterprise Value
Less than $75 million
Watchtower Investment
$10 million -$50 million through the life of a platform (initial investment may be <$10 million)
Target Financials
Maximum revenue of $100 million; maximum EBITDA of $7 million
Geography
U.S. and Canada ​
Industry Characteristics
Fragmented competitive landscape and recession-resistant demand
Ownership
Family or founder owned
Value Creation Strategy
We bring extensive experience from careers in private equity and seek to apply principles learned to the small businesses that we invest in.
We take a buy & build approach to our investments, which is an acquisition-centric strategy focused on expanding into new markets, building market density and benefiting from increased scale.
- Execute and integrate add-on acquisitions
- Expand geographic footprint
- Strengthen sales team and increase marketing focus
- Enhance IT and back-office infrastructure
- Optimize business mix and market positioning