When Selling a Business, Finding the Right Partner is Your Most Important Decision
— We've been in your shoes as sellers and aim to be the best partner possible
Investments We Pursue
Thesis Capital focuses on situations where the goals of owners, operators, and long-term stewards align. The motivation behind a transaction matters just as much as the financials. Not every company or ownership transition is suited to our approach, and that is intentional.
We aim to create positive sum outcomes. The best partnerships begin with shared values and the belief that long-term success is better achieved together. Most of our investments follow three broad paths:
1. Legacy Transitions
We acquire 60 to 100 percent of a company from owners who want a thoughtful and stable handoff. Some sellers want to retire immediately while others prefer a gradual transition over several years. We design the plan around what preserves continuity and protects the company.
2. Growth Partnerships
We typically buy 51 to 80 percent from owners who want partial liquidity while remaining engaged for years to come. These companies have strong prospects and leadership that wants to build at a sustainable pace. We will consider minority investments when the company generates at least 5 million in discretionary free cash flow.
3. Management Partnerships
We support operators who run the business day to day while owners prepare to exit or already have. These situations are ideal when the operating leaders want autonomy, stability, and a partner who helps them grow without unnecessary disruption.
There are many transactions where we are not the right fit. The best outcomes come from situations where incentives, timelines, and values line up. The sections below describe where Thesis Capital has consistently found success.
A legacy transition occurs when Thesis Capital acquires most or all of a company so the owner can step back without jeopardizing the business. These situations often involve a founder or long-tenured owner who cares deeply about continuity. The typical timeline to transition ranges from 18 to 48 months but often earlier.
Our approach has three defining traits. We invest with a long-term mindset. We avoid highly levered transactions and the restrictions that come with it. We focus on preserving the culture, identity, and reputation built under previous ownership.
Long-term ownership is central to our model. Many sellers prefer one final, intentional transaction instead of being pulled into a cycle where the company is resold every few years. Traditional private equity funds often require multiple future exits or an eventual sale to a strategic buyer. Our structure allows the business to remain independent and focused on serving customers for decades in most situations.
We invest our own capital and avoid highly levered transactions. This provides operational flexibility and removes pressure from bank covenants or third-party investors. Long-standing family businesses tend to avoid heavy leverage because it creates fragility. We share that belief. Our goal is to maintain the company’s strength, not introduce unnecessary risk.
Protecting legacy includes more than financial stewardship. It requires honoring the people who built the business, keeping the brand stable, and making sure the transition feels natural for employees, customers, and suppliers. The company should continue doing what it does well, with Thesis Capital serving as a support system that expands capacity where needed.
Some owners are energized by the future and want a partner who helps them reach it. In these cases, the discussion is driven by liquidity, strategic investment, and a long-range vision. We see it as a strong sign when owners want to stay involved. They know the business better than anyone and their commitment signals confidence.
A partnership with Thesis Capital is built on shared ownership. Decisions related to growth, reinvestment, acquisitions, and distribution strategy are made collaboratively. We optimize for endurance, not speed. Quick wins that damage culture or exhaust teams are not part of our philosophy. The best long-term decisions often take time.
We do not announce our involvement loudly. Most customers and suppliers feel little change because the business should continue operating smoothly. The difference is that operators no longer carry the entire burden alone. They gain a patient partner who can support larger ambitions without rushing the process.
We invest behind the vision of the leadership team. We focus on their goals, constraints, and long-term roadmap. One of our favorite discussions is identifying investments that may take years to pay off but meaningfully shape the company’s next era. Without external debt obligations draining cash flow, both parties participate in the upside when the growth plan succeeds.
Many of our early investments are structured as partnerships.
A management partnership resembles a growth partnership but the operators are not the primary shareholders. These scenarios often occur after owners have stepped back or when operators want the opportunity to lead with more autonomy and more alignment.
Thesis Capital works directly with the management team to create a structure that is fair to existing owners while positioning the operators to take the company forward. The objective is to create an arrangement where the owners exit responsibly, the operators gain a true partner, and the business benefits from stability.
Practical Stewardship
We invest in companies that consistently generate real earnings. Years of operating experience have taught us how fragile success can be. Small changes made too quickly can destabilize a business. Our role is to understand what already works, respect the foundation that exists, and build from there. We start by listening, not prescribing.
No Prepackaged Plan
We avoid rigid 100-day plans or prewritten playbooks. Every company has its own culture, rhythms, and competitive advantages. The people who run the business day to day understand it best. Our first instinct is to learn deeply and only introduce ideas once we understand the context well enough to offer meaningful value.
High Character Partnerships
We expect professionalism, integrity, and long-term thinking from ourselves and from partners. Businesses succeed when people enjoy working together and operate with respect. We avoid situations driven by short-term extraction or destructive behavior. Life and work function better when teams treat each other well and do what they say they will do.
Minimal Use of Debt
While many investors depend heavily on leverage, we generally try to use less debt. Debt limits flexibility, especially during volatile periods. By keeping the balance sheet more modestly leverage, companies can retain great employees during downturns, hire exceptional people when competitors are constrained, and reinvest without pressure. In strong markets, teams benefit from real distributions rather than bank payments.
Long-Term Hold
Founders rarely build with an exit timeline. They build because they see an opportunity and commit to it over decades. Thesis Capital invests with the same intent. Long-term ownership encourages disciplined decisions, careful risk management, and deep relationships with stakeholders. Short-term owners think differently. We align with those who want to protect the future rather than optimize for a near-term sale.
Capital is easy to find. Values and alignment are not. Owners who only want the highest possible check can choose from many buyers. We focus on what is best for the founder, the team, the customers, and the future of the business.
When priorities include stability, culture, and long-term stewardship, Thesis Capital can be the right partner. We help strong companies stay strong and continue building for decades to come.
