Private Equity

Minnesota-based growth funding to realize your potential and let you make a smooth exit. By fueling your growth with funding options and structured advice, we make your exit strategy our business.
WORKING WITH TRACTION CAPITAL: A FOUNDERS PERSPECTIVE

ACQUISITION CRITERIA

Looking to Make a Change?
Whether you’re a founder ready to take some chips off the table, a leadership team interested in buying out an existing owner, or a founder seeking a partner to accelerate growth, we’re here to help. With access to both our fund and strategic banking relationships, we have the flexibility to acquire anywhere from 51% to 100% of your company. 

We’re Not Your Typical Private Equity Firm
At Traction Capital, we focus on the people, the processes, and the profitable growth of your business. We’re not a big, impersonal PE firm – we are small business owners ourselves, and we understand how to run a company with a hands-on approach. As your partner for growth, we’re committed to building long-term value together.

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TARGETED INDUSTRIES
B2B and B2C, technology and information services, mobile software and systems, SAAS, business services, distribution, niche manufacturing and consumer products
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COMPANY SIZE AND CHARACTERISTICS
Private equity deals have 500k - $3M EBITDA and upside based upon unmet market opportunity
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INVESTMENT SIZE
Private equity investments made up of a combination of cash from Traction Capital and leverage from banks and other sources. Price is market dependent (typically 4-6x EBITDA range but varies by deal)
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GEOGRAPHY
Companies based in the Midwest with a focus on Minnesota

IDEAL DEAL FOR PRIVATE EQUITY

Criteria
Details
EBITDA $500k – $3M
Enterprise Value (EV) $2M – $20M
Leadership Key leadership looking to remain
Location Midwest (Preference for Minnesota)
Industry Preference Manufacturing, E-commerce, and SaaS

Proven Process

Traction Capital follows an 8-step approach inspired by the Traction® EOS® framework to strategically invest in and grow businesses. This process ensures thorough evaluation, structured deals, and continuous development to maximize value and achieve successful exits.

Well-aligned opportunities identified by a trusted network of investors, entrepreneurs, consultants, EOS® implementers and others

Comprehensive analysis including legal, intellectual property, financial, competition, customers/partners and management team

Negotiate deal terms, conditions, valuation and capital structure with post-close initial planning

Define vision, values, mission and strategy (brand) with plan for enterprise-wide implementation; begin EOS® implementation

Execution of plan; EOS® implementation continuation; accelerate top-line growth

Scale business; M&A and strategic growth capital; mentorship of management team and board-level leadership

Bottom-line optimization; market analysis and positioning; preparation for transaction

Identify prospective buyers; manage process; negotiate deal

INTERESTED IN AN INVESTMENT? CONTACT US TODAY

Ready to take the next step? Apply below to connect with Traction Capital and begin your journey towards growth and success. Let us help you turn your business vision or exit into reality.

Know of a great business ready for acquisition?

If you have a qualified opportunity that aligns with our criteria, send a referral our way! Traction Capital values connections to potential investments and offers a competitive referral fee for acquisition opportunities that lead to successful capital deployment.

Fill out our referral form with the business name, what they do, your connection to the business, and roughly the size if you’re aware. Then we’ll set up a first meeting to discuss the opportunity! Feel free to email Justina with any questions.

Scott litman

strategic growth partner

Scott Litman is a serial entrepreneur, advisor, and investor who brings decades of hands-on startup and growth experience to Traction Capital. With five successful company exits and a long list of accolades, he’s a driving force behind innovation and scale in Minnesota’s business community.

As a Strategic Growth Partner, Scott has an immense level of experience in entrepreneurship that he brings to Traction Capital.  He has gone from startup, funding, growth and exit five times (Imaginet Inc, Spot Buy Spot, Imaginet LLC, Magnet 360 & Lucy). In that time, he has received a number of honors & awards including E&Y Entrepreneur of the Year, Business Journal Titan of Technology, University of Minnesota Outstanding Achievement, Smart Business Dealmakers Hall of Fame, Twin Cities Business 100 People to Know / Watch (3 times), Minnesota Business The (Real) Power 50 and Business Journal 40 Under 40. Along the way, Scott has experienced being #1 in The Business Journals Fast 50, made the Inc 500 and has worked with over 25% of the Fortune 500.

Scott founded the Minnesota Cup, the largest state wide business plan competition in the US and has been on the Board of Advocates for Backpack, a student run marketing and communications agency out of the University of Minnesota.

Scott has served on the BOD, Advisory Board or been advisor to a number of startups that have had tremendous success including Enstratus (acquired by Dell), InStereo (acquired by Salesloft), HealthSimple (acquired by J&J), Hollywood Fashion Secrets (acquired by American International Industries), I See Me (acquired by The McEvoy Group) and more.