We Are Midwest Investors.
Focused on Building Great Companies.
Alongside Passionate Owners and Operators.
Junction Equity Partners is a Pittsburgh based lower middle market investment firm, solely focused on working with family and founder owned businesses within the essential services and specialty distribution sectors.
We Are Passionate About Supporting Family-Founder Owned Companies on Their Next Journey
Our mission is to work with family-founder owned companies to invest time, talent, and capital in supporting great people to build sustainable long-term value. We define winning as prosperity for employees, management teams, and shareholders of our partnerships. We are focused on the following attributes:
Lower Middle
Market
EBITDA between $1 and $6 million. Gross Margin greater than 25%. EBITDA Margin greater than 10%.
Essential Services & Specialty Distribution
We seek to work with scalable businesses with distinct competitive advantages headquartered in the U.S.
1st Institutional Investment
We are focused on working exclusively with entrepreneurs and families who are evaluating bringing on outside investment for the first time.
Growth Oriented Companies
We invest in businesses with a demonstrated track record of sustainable positive cash flows and revenue growth.
We are actively seeking control investments in these industries
Leveraging our years of experience and executive network, we believe we are uniquely positioned to pursue and partner with lower middle-market businesses across the services and distribution sectors. We actively try and identify industries where we believe there to be sustained growth and attractive investment themes to build durable platforms for the long-run.
Infrastructure
Services
Maintenance, inspection, upgrade, installation and professional services for private and publicly owned infrastructure.
Commercial & Facility Services
Technical services requiring skilled labor for critical business environments.
Residential & Franchise Services
Skilled and semi-skilled recurring, maintenance oriented services for interiors and exteriors of homes and businesses.
Route-Based & Logistics Services
Services that support the management and movement of materials and goods from critical distribution points all the way through the value chain to end users.
Testing, Inspection, and Measurement
Essential testing, calibration, monitoring, and/or verification services related to condition assessment, quality control, and health and safety.
Value-Added Distribution
Industrial or consumer product distributors with a deep value-added service dynamic such as engineering, installation, repair, ongoing monitoring, or customization.
Our Values
Our core values guide us in all of our interactions with our management partners, portfolio companies, investors, and service partners.
Integrity
Consistent and uncompromising adherence to strong moral and ethical principles and values.
Transparency
Open and honest in approach.
Mutual Respect
Everyone being valued for who they are, where they are from, and what they bring to the table.
Radical Accountability
Embrace 100% ownership. As a team, we celebrate our wins and learn from our mistakes.
Excellence
Foster a mindset of continuous improvement, never be complacent.
Let's have a real conversation about your personal and business goals.
Fit and Alignment
Most family-founder ownership groups will only go through an ownership transition once in their lifetime. This is the most important part of The Journey. Our goal is to sit down and really listen and understand your priorities in finding the right partner and ensuring our long-term goals are aligned. During this phase, we are highly focused on mutual alignment and ensuring we are also the right fit for you. We always look to put in place confidentiality agreements out of privacy for your life’s work and your people.
Putting Together a Mutually Beneficial Transaction
When we believe there is alignment, we will begin to assemble the Junction team and leverage our executive network to work expeditiously through diligence with you and your team to put together an offer. Typically, we can work to close a transaction within 45 to 90 days of signing a letter of intent, so long as we can get proper access to run our diligence process.
Developing an Actionable Value Creation Plan
While we do not believe in a one-size fits all “playbook” with our partner companies, we do believe the pillars of success during our investment will centralize around People, Processes, Technology, and Data. We look to work with our teams long before a deal is done to establish an agreed upon strategy with measurable goals to guide us post-close. It’s a culmination of months of on-site visits, meetings, and interviews. This helps set expectations and mutual accountability for all upon closing of the transaction.
We Get to Work
While closing of a transaction is often celebrated (and deserves to be), it is the beginning of the Journey. We put our team into action and often work with third party partners with subject matter expertise to expedite certain aspects of our post-close value creation plan. Several promises we seek with our partners: (i) Townhall completed within first 90 days; (ii) at least a bi-weekly on-site meeting cadence the first 90 days; and then at least monthly on-site the next 90-270 days until we all feel the plan is being executed and everyone is comfortable with the cadence. One constant we believe in is change. We always look to stress test and challenge assumptions we made with our partners to ensure we are evolving our thought process to drive optimal outcomes for our employees, management teams, and shareholders.
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Meet Our Team
Junction Equity Partner’s team is comprised of hardworking, authentic professionals, who are dedicated to our mission of creating last legacies for our partner companies. We leverage a network of investment professionals and operating executives that allows us to have the insight to make smart decisions with our management teams while driving sustainable value for businesses.
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