Fueling Growth: How Acquira Capital Empowers Small Business
Acquira Capital offers a unique investment opportunity to those who want to see the benefits of acquisition entrepreneurship but don’t have the time to actively operate a business themselves.
This is part of a larger mission to help ease the looming economic crisis as millions of baby boomers retire – many without any succession plan in place.
Before getting into exactly what Acquira does, let’s look a little at the capital needs of small businesses.
Understanding the Capital Needs of Small Business
Different types of capital requirements exist for small businesses, encompassing both short-term and long-term needs.
Short-term capital requirements include funding for day-to-day operations, inventory management, and managing cash flow.
On the other hand, long-term capital needs revolve around investments in equipment, expansion projects, research and development, and marketing initiatives.
Understanding these distinct capital requirements is essential for small businesses to effectively plan and seek appropriate funding sources.
Small businesses often face challenges in accessing capital due to various factors. Limited credit history, lack of collateral, and higher risk perception by lenders can make it difficult for small businesses to secure traditional loans.
Additionally, stringent eligibility criteria, lengthy application processes, and high interest rates can further impede access to capital. These challenges can hinder business growth, restrict innovation, and limit the ability to seize new opportunities.
Addressing the challenges faced by small businesses in accessing capital is crucial for fostering business growth and supporting entrepreneurial success.
The Role of Acquira Capital in Empowering Small Business
Acquira Capital’s mission is to help preserve the legacy of small businesses by providing the training and skills acquisition entrepreneurs need to buy and successfully operate their own companies.
Small businesses are essential to the American economy as well as being critical to their local communities.
This mission is particularly crucial as a so-called “sliver tsunami” begins over the coming years as millions of Baby Boomers retire – many without any succession planning in place.
This accounts for roughly 2.3 million businesses in the United States, that employ over 25 million people.
The “silver tsunami” is more than just a successions problem, however. It is also a demand problem.
As these businesses come up for the sale, the demand (the number of qualified AEs available) might not be able to meet the supply. This could lead to an overall decline in the value of these businesses – further restricting the ability of boomers to retire and get the best value out of their hard work.
How Acquira Can Help Small Business Succession
Acquira’s Acquisition Accelerator program aims to create a pipeline of qualified buyers who are ready to buy and grow these small businesses.
The Acquira Capital program is a high-yield private investment opportunity for accredited investors to invest in a portfolio of small businesses – all of which originate from the Accelerator program.
This aims to reduce the risk of buying and operating small businesses to fit an optimized fit between AEs and target businesses.
It is designed for anyone looking for private equity investment opportunities but don’t have the time to operate a business themselves.
Empowering Small Business Through Financial Education
Financial literacy plays a crucial role in empowering small business owners to make informed financial decisions and effectively manage their businesses.
Understanding key financial concepts such as budgeting, cash flow management, financial analysis, and risk assessment enables entrepreneurs to navigate the complexities of running a small business and position themselves for long-term success.
With strong financial literacy skills, small business owners can make sound financial strategies, optimize resource allocation, and mitigate financial risks.
Acquira Capital is dedicated to empowering small business owners through financial education initiatives. They recognize the importance of equipping entrepreneurs with the necessary knowledge and tools to thrive in a competitive business environment.
Acquira offers this education through its Accelerator and ACE Framework (another program that aims to move an owner-centered operation to a management-led one in relatively short order).
This includes practical advice, real-world examples, and step-by-step instructions to help entrepreneurs navigate financial challenges.
Sample Transactions of Acquira Capital
Here’s a look at some sample transactions for Acquira Capital.
Florida Stone Fabricator: This is a stone surface fabricator catering to high-end residential design clients with a 15-year track record.
- Price: $4M
- EBITDA: $1.15M
- Multiple: 5X
Colorado Aerospace & Defense Contractor: This is a CNC shop specialzing in prototyping short-run manufacturing. It also has long-term relationships with defense contractors.
- Price: $4.6M
- EBITDA: $1.3M
- Multiple: 5X
Acquira’s approach is about acquiring and revitalizing small businesses, preserving the legacy of those businesses, and ensuring that they continue to contribute to the economy. Acquira aims to provide the skills and expertise for acquisitions entrepreneurs to purchase and successfully operate small businesses, mainly in the home services industries. This can include its Accelerator and ACE Framework. Acquira Capital aims to connect those who have the capital to get into acquisition entrepreneurship but don’t have the time. These programs will collectively work together to help ease the transition as the so-called “silver tsunami” approaches as millions of baby boomer-owned businesses go up for sale over the coming years.