Backing Builders: The Upper Case Capital Approach

Backing Builders: The Upper Case Capital Approach

At Upper Case Capital, we specialize in acquiring and scaling established, cash-generative businesses in hardware, software, renewable energy services, and industrial sectors. We partner with business owners who have built high-quality, profitable companies and are seeking a transition that ensures continued growth, not cost-cutting.

But what types of businesses do we look for? And how do we structure our acquisitions? Let’s break it down.

What We Look For in a Business

We focus on businesses that are proven, profitable, and built to last. Here are the key characteristics we seek:

1. Built to Last

We acquire companies with strong fundamentals—consistent cash flow, a solid market position, and a track record of profitability. Specifically, we look for:

• EBITDA: $2M - $7M, with at least 5 years of cash generation
• Revenue: Minimum $8M in sales
• Profitability: GPM of at least 30%, EBITDA margin of at least 12%
• Highly Recurrent Revenue: 80%+ repeat customer business

2. Makers & Builders

We seek out businesses that manufacture, engineer, or develop tangible solutions. Whether it’s electrical engineering, industrial automation, hardware, or software, we look for companies that create something real and valuable. This includes:

• Hardware and software companies with defensible IP
• Manufacturing and industrial businesses with specialized expertise
• Renewable energy service providers supporting Australia’s energy transition

3. Scalable & Defensible

We target businesses in expanding and fragmented industries, where growth can be achieved through market positioning, operational improvements, and strategic expansion—not aggressive restructuring. Our criteria include:

• B2B business model with long-term customer relationships
• Diversified revenue base (no single supplier >30% of sales, no single customer >20% of revenue)
• Scalability without heavy capital reinvestment

How We Structure Our Acquisitions

Our approach to acquiring businesses is flexible, business owner-friendly, and long-term focused. We know that transitioning a business is a big decision, and we structure deals that create value for both the seller and the company’s future.

Majority Ownership with Flexible Structures

We acquire a majority share (at least 51%) in businesses and are open to multiple deal structures that allow business owners to stay involved at the right level for them. Options include:

• Full exit: A clean break for business owners ready to step away
• Gradual transition: Phased ownership shifts to ensure continuity
• Ongoing vendor participation: Retaining a minority stake for continued involvement

Funding Approach

We use a mix of equity, debt, and structured financing to fund acquisitions, ensuring that deals are structured for long-term stability. Our capital deployment is strategic, with a focus on:

• Preserving operational continuity—no reckless overhauls or short-term flips
• Investing in growth—leveraging capital to expand market reach, improve efficiencies, and unlock new revenue streams
• Aligning incentives—allowing business owners and key executives to retain a stake in the company’s future success

Why Business Owners Choose Upper Case Capital

Selling a business isn’t just about numbers—it’s about finding the right partner to protect and grow what you’ve built. At Upper Case Capital, we provide:✅ Hands-on operational expertise—we know how to scale businesses, not just finance them
✅ Strategic growth planning—we build on a company’s strengths rather than cutting costs
✅ Business owner-friendly deal structures—ensuring a smooth transition that aligns with your vision

If you’re considering a transition, we’d love to chat about how we can help.

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