Investment Criteria
Focused. Flexible. Built for Long-Term Success
At NXTWAVE Capital, we invest in established small businesses across the (Southern) U.S. that are profitable, durable, and ready for the next chapter. As a family investment office, we provide sellers and brokers with a reliable, bank-free deal process—backed by equity and seller financing for speed and certainty.
We are building a diversified portfolio of high-quality businesses that are too small for private equity, too proven for venture capital, and just right for our long-term approach.
Quantitative Financial Criteria
Consistent Cash
Flow
We are primarily interested in businesses with a history of consistent and predictable cash flow. We prioritize a strong track record of profitability over short-term growth spikes.
Strong
Margins
Ideal businesses for us have an EBITDA margin of 20% or higher and an EBITDA between $0.5 million and $2.5 million.
Stable And Predictable Revenue
We prefer businesses with steady, non-cyclical sales and a proven ability to retain customers. Our target revenue range is $1.5 million to $10 million.
Fragmented Customer And Supplier Base
We require a diversified customer base, with no single customer accounting for more than 10% of total revenue. Similarly, a balanced supplier network is preferred.
Qualitative & Operational Criteria
Established And Proven Business Model
We do not invest in startups or turnaround situations. We are looking for established businesses with a solid foundation and a proven operational history.
Defensible Competitive Advantage ("Moat")
We seek businesses with a clear competitive advantage that makes them resilient to market pressures. This can include a strong brand, unique patents, high customer switching costs, deep customer integration, or operational cost advantages.
Transferable
Operations
The business should not be overly reliant on the current owner. Key relationships, licenses, and certifications must be transferable to ensure a smooth transition and continued success.
Resilient
Industry
We focus on businesses in stable, less disruptive industries that provide essential services or products. We are not interested in businesses in highly speculative or rapidly changing sectors.
The Bottom Line - Key Criteria
Financial Profile
$0.5M – $2.5M EBITDA with strong, consistent margins (20%+)
$1.5M – $10M revenue, stable and recurring.
Diversified customer and supplier base (no heavy concentration)
Business Model
Established operations with a proven track record.
Resilient, non-cyclical industries (essential products/services)
Clear competitive moat— things like brand, contracts, switching costs, or efficiencies.
Transferable operations that aren’t overly dependent on the current owner.
Ownership Profile
Succession-ready founders and families seeking a smooth transition.
Flexible options for existing management, searcher partnerships, or new leadership.
We also welcome continued owner involvement or ownership and shared future success.
We move quickly, we respect confidentiality, and we keep the process straightforward—just you and us. If your business fits these criteria, we’d love to start a conversation.