INVESTMENT THESIS

Targets

At Rootstock Equity Partners, our investment targets have a common theme: private B2B tech companies in categories such as healthtech, dev tools, cybersecurity, cloud infrastructure, edtech, proptech, salestech and fintech that are in need of a shareholder who shares a similar vision and who seamlessly aligns with their needs and potential. We categorize our targets into:

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• MBOs: We step in when a previous acquisition hasn't met expectations, typically because the acquirer lacks the necessary expertise to effectively manage a tech company. By bringing in our specialized knowledge and hands-on approach, we realign these companies with a strategy that leverages their technological strengths.
   

• Buy and Build: This strategy involves acquiring platforms — companies with over $10M in revenue and a clear path to profitability in sectors such as Healthcare, EdTech, Fintech, Dev Tools, Cybersecurity, Infrastructure, and SaaS business applications. We then seek out smaller companies that offer complementary product synergies, upsell, or cross-sell opportunities, creating a cohesive and stronger entity.
   

• Distressed Assets: Our approach to distressed assets is uniquely rigorous. We invest only when we can identify solvable core issues at the due diligence stage. The aim is to quickly turn around these companies by applying our deep operational and financial expertise.

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Process

At Rootstock Equity Partners, we infuse the art of business growth with the precision and care of skilled cultivators, nurturing your company through four essential phases:
 

1. Strengthening your Business Foundations
   We help reinforce the root aspects of your business by tuning your operational efficiency, strengthening your financial health, and solidifying your leadership structure.
    

2. Identifying the Perfect Growth Partners
   We seek partnerships that align with your business and also bring new technology, market access, or capabilities, focusing on long-term value and compatibility.
    

3. Integrating Growth Partners
   We manage the complexities of mergers & acquisitions with patience and attention to detail, ensuring a seamless integration that cultivates growth.
    

4. Nurturing and Preparing for a Fruitful Exit We nurture and refine operations to help the business reach its full potential, strategically positioning it for a successful exit and harvest, reflecting our high standards and deep understanding of B2B growth.
    

Across all categories, our investment horizon typically spans 2 to 4 years, allowing us to deeply engage and transform these businesses. We step into this role with a commitment to operational excellence and strategic execution, ensuring that each company not only realizes its vision but also delivers maximum value to all stakeholders.