We listen to business owners and design a win/win situation for the business owner and investors. We support the owner and provide the business with what the business needs. We have been in your shoes and can empathize with the pressures of owning your own business.

Why TEP Exists

We are a group of local current and past business owners, professionals, CPAs, and people with other business backgrounds who have worked hard and saved money. We are not interested in giving our money to a group of finance people in an equity group who will decide, on their own, what to do with our money. Many of the equity groups have people that have never run a company. We do not want an equity group charging us a bunch of fees, and then in about 10 years we found out how much money we get back. Those groups are set up for the benefit of the people in the equity group, not for the investors or companies they invest in.

We seek out attractive opportunities that suit our criteria. We develop a memorandum to explain the business to our investors. We review the opportunity with our investors and listen to their comments and advice. Each investor can decide whether or not to invest in each opportunity. We have enough investors, with enough money, that permit us to take this approach. This way, each investor has made his/her own decision on the businesses he/she invests in.

We Believe in Simplicity

So many equity groups put as much debt, at nearly any cost, on the businesses they purchase to minimize the equity needed. As a business owner, debt is one of the items that can keep you awake at night. We do not believe in complex financial engineering. If the terms are too complex, there’s likely too much debt. We like 40%-60% equity and the balance in debt. This allows us to pay distributions to owners and provides the financial flexibility to grow the business, withstand downturns, and not be beholden to the bank.

We also believe in simple businesses that are easy to understand. The startup that is going to be the next Google is not for us. We stay away from technology companies and startups. We are a fan of old-school boring companies that will be here for many years.

How We can Benefit You, the Business Owner

You have likely thought many times about taking some chips off the table, building your nest egg, and getting others to share some business risk with you. You may also like to have some people you respect have their interests aligned with yours, especially those that have grown businesses many times. You can also see value in creating a small team of investors that meets Quarterly to discuss the direction of the company and ideas for improvements. You would like a path to retire from the business when you are ready without being forced to sell the company.

TEP was Designed to for the Business Owner

Transfer Equity Partners is an investment vehicle focused on helping owners of lower middle market companies extract value out of their business while also gaining assistance in growing the business. We are a group of professionals and business owners that provide you a long-term transition plan and remove some risk from your life. How do we do this?

Our group of investors invests money into your business with nearly all of the investors remaining silent investors. A few TEP personnel will meet with you quarterly and one TEP person more often, if needed. We help you with issues that have kept you awake at night. We alleviate some of the risk and burden of your business allowing you to focus on growing your business.

Our investors include very successful business owners, CPAs, and business development experts that have built many types of companies. These investors all have a vested interest in helping the company succeed.

We seek advice from investors as they are needed. We frequently update our investors on how the businesses they invested in are performing. For each of our investments, each investor had the choice to invest.

Why Partner with Transition Equity Partners?

Our 20+ Investors have experience across many distribution, service and manufacturing industries. We help develop clear operating plans for the business and do not focus on financial engineering as private equity companies do.Our goal is to create long-term value for you and the investors. We do not have a set level of involvement; we work with the business owners to determine what support and assistance is needed.