CLARENCE SQUARE CAPITAL
ABOUT US
Clarence Square Capital was founded to acquire and invest in small businesses. We ascribe to a value-investing philosophy, looking to acquire companies at attractive valuations relative to their free cash flow. Our ideal investment candidates operate in non-cyclical industries, providing essential goods and services and with a demonstrable track record of sustainable profitability. We also look for management and employees that are passionate about what they do, and where we can work with existing teams to build on past success, as opposed to implementing wholesale changes.
OUR BACKGROUND
We have more than two decades of combined experience advising corporations on M&A and capital raising at a bulge bracket investment banking firm. Over these years we learned to work closely with management teams and get to know their business intimately. We have extensive knowledge with respect to conducting due diligence, identifying business risks, financial modeling, deal structuring and financing. Our experience spans across a broad range of industry sectors .
OUR APPROACH
We look to acquire businesses that are already well-established and generating healthy cash flows but can benefit from better capital allocation policies and operational enhancements. We are also interested in exploring companies that have the opportunity to consolidate their sector through a roll-up acquisition strategy. We are patient investors and focused on meeting the long-term objectives of not just shareholders, but also our customers and employees. We believe small businesses form the backbone of a strong, vibrant economy, and are committed to pursuing our goals in a way that serve the needs of the broader community and environment we operate in.
THE OPPORTUNITY IN SMALL BUSINESSES
We believe investing in small businesses offers attractive risk-adjusted returns for investors with a long-term time horizon. While entry multiples for larger leveraged buyout deals have risen considerably over the last decade, small business transaction multiples remain attractive. The supply / demand dynamics in the small business M&A market favor buyers due to demographics. The Baby Boomer generation is the largest owner of small businesses in North America of any generation, and as they enter retirement many will look to exit their investments. This ensures that we will have a robust pipeline of investment opportunities to evaluate for many years to come.