KATALYST PARTNERS

THE OPERATOR'S ADVANTAGE

WE ACQUIRE, OPERATE, AND GROW BUSINESSES WHERE WE CAN LEVERAGE OUR DIRECT OPERATING AND DOMAIN EXPERTISE TO CREATE ENTERPRISE VALUE. 

 

BY DISSECTING THE VALUE CHAIN, IN INDUSTRIES WHERE KATALYST HAS DIRECT OPERATING EXPERIENCE, KATALYST IS ABLE TO IDENTIFY INVESTMENT OPPORTUNITIES WITH STRONG BUSINESS FUNDAMENTALS CAPABLE OF GENERATING OUTSIZED RETURNS AT THE CURRENT STAGE OF THE ECONOMIC CYCLE. 

PROFESSIONALIZING BUSINESSES

Diving into the business for an extended initial period implementing a results-focused business operating system to drive sustaining change in customer service, operational efficiency, organizational culture, and sales. 

EXPANDING

MARGINS

Cost reduction and revenue expansion from product sourcing, product development, and unit economic driven customer acquisition marketing strategy. 

NAVIGATING INDUSTRY

VALUE CHAINS

From an operational lens that is aware of overlooked industry and business dynamics such as franchisor/franchisee relationships, digital economy threats, hourly worker management, and increasing costs as well as concerns with auto insurance.

 

INVESTMENT CRITERIA

Katalyst is an investment partnership of entrepreneurs with access to greater than $25mm in capital and significant operations experience acquiring businesses that we can scale leveraging our experiences and leading a capable management team. 

 

We are currently interested in making investments that meet the following criteria: 

BUSINESS

  • Stable, recurring revenue with scalability

  • Sustainable competitive advantage

  • Opportunistic industry dynamics

FINANCIAL

  • $4 - 40 million in revenue

  • $1.0 - 4.0 million in EBITDA

  • 10%+ EBITDA margin

SITUATIONAL

  • Capable management team in place

  • New vision needed to grow the business

  • Existing owners looking for a transition

 

ASYMMETRIC RETURNS

"Investors can access public markets via ETFs or mutual funds, and benefit from passive index products flourishing, but they cannot access the true outliers of growth within private markets. This asymmetry is due primarily to opportunities for significant gain being increasingly concentrated in private markets, as exclusive information that alpha is derived from continues to dissipate from public markets." 

~ Garrett James Black

Katalyst is an investment partnership of entrepreneurs with access to greater than $25mm in capital and significant operations experience acquiring businesses that we can scale leveraging our experiences and leading a capable management team. 

 

We are currently interested in making investments that meet the following criteria: 

SECTOR FOCUS

Katalyst is only focused on acquiring businesses where the firm has direct domain expertise to minimize the number of unknowns, avoid overlooking hidden industry and business dynamics, and ensure Katalyst is able to drive value and execute its vision through its VCP unlocking significant value for investors while mitigating downside risk. 

RECESSION RESISTANT

CONSUMER / BUSINESS PRODUCTS

NONDISCRETIONARY CONSUMER AND BUSINESS SERVICES

NON-LOCATION-DEPENDENT

FRANCHISORS

MACROECONOMIC TRENDS

We are at the tail-end of the business cycle requiring insider knowledge from true operators to identify businesses capable of generating outsized returns in the following conditions: 

ECONOMY

Tariff

implications

LABOR

Labor shortage and inflationary wage trends

TECHNOLOGY

Shared economy and technology competitors 

INFLATION

Supply and demand-side inflationary pressures

FAVORABLE BUSINESS DYNAMICS

Katalyst's operational expertise provides a strategic advantage in identifying businesses positioned with favorable business dynamics.

Able to absorb inflationary pressures

+

 Low capital expenditure requirements

+

Protected from the shared/digital economy

+

 Strong unit economics with defensible margins 

+

Clear path to scale and execute a VCP 

+

 Insider sector/business operating knowledge

+

FAVORABLE

Poor Porter’s Five Forces

--

Capital intensive business models

--

Threatened by the shared/digital economy

--

Margins highly dependent on low labor costs

--

Location-dependent businesses

--

Auto insurance risks / costs

--

UNFAVORABLE

 

PERSISTANCE

"Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan Press On! has solved and always will solve the problems of the human race." 

~Calvin Coolidge

INVESTMENT PHILOSOPHY

An operationally-focused investment firm determined to deliver value based on proven operational success with access to over $25MM equity capital from our principals and investors.

ASYMMETRIC RISK

Identify opportunities of asymmetric risk to maximize returns and mitigate risks

CLEAR PATH TO GROWTH

Pursue opportunities with clear pathways to growth aligned with Katalyst's operating expertise, and

DRIVE VALUE AND EXECUTE

Deploy into each company to drive value and execute the Katalyst value creation plan.

 

SELLER ADVANTAGE

Our principals assume active roles in the company allowing owner flexibility in their level of involvement in the business. We will provide a flexible, customized transaction structure tailored to the seller's needs as a priority enabling tax efficient tax planning and upside opportunity by retaining an interest in the business, if desired. 

PRIOR PORTFOLIO

 

We offer both capital and management talent towards growing and transforming our portfolio companies. 

COLLEGE HUNKS HAULING JUNK AND MOVING - DENVER

Exited the business at 11x invested capital achieving 312% in 18 months

PRIMROSE SCHOOL BRIARGATE

Realized a 3x equity appreciation in 10 months

SPEEDPRO IMAGING

Increased systemwide sales 15% CAGR, 2x industry

SLEEP INNOVATIONS

Realized a 400% return on equity

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TEAM

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“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”

Founder and Managing Partner

BORIS KATSNELSON

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"Life is wide, limitless. There is no border, no frontier."

Vice President

KEITH PLUM

 

MANAGING PARTNER'S BACKGROUND

Katalyst Partners is an investment partnership of entrepreneurs with access to greater than $25mm in capital that invests in and consults companies with strong fundamentals and can benefit from hands-on involvement by our principals. Our Managing Partner, Boris Katsnelson has 20 years of investment banking, private equity, operating and transformational leadership experience. He began his career in investment banking and private equity that springboarded him into a career of investing and running companies. He was an instrumental part of the turnaround of Sleep Innovations, a foam manufacturer serving B2B and consumer markets, that was in bankruptcy. Katsnelson built a $25+mm new business unit and revamped the B2B division's go-to-market strategy that led to doubling the business in 2.5 years. Katsnelson subsequently acquired and ran SpeedPro Imaging, a 100+ unit franchisor. As CEO, he revitalized the organization and its systems, leading to significant gains in systemwide sales and franchise unit count. More recently, Katalyst acquired College Hunks Hauling Junk and Moving in Denver and established operating systems that led to 230% revenue growth in the first year of its ownership.

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IN THE NEWS

Boris Katsnelson, the Managing Partner and Founder of Katalyst Partners, shares his insights on how to find an investment opportunity in the Franchise industry  on The Franchise Story Podcast. 

 
 

CONTACT US

We are actively reviewing and pursuing acquisition opportunities that meet our investment criteria. If you are interested in learning more about Katalyst Partners, discussing a potential transaction, or conveying another opportunity please call or email us at (720) 608 - 6090 or boris@thekatalystpartners.com

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