Future Proof Your Legacy
Looking to Exit?
Frost River Capital is focused on acquiring one company with $200k - $500k in EBITDA, preserving the existing ownership's legacy, and evolving operations to meet a rapidly evolving world. Frost River Capital was started by Rob Carpenter, a serial entrepreneur based in Boulder, Colorado. Rob has an MBA from CU Denver and over a decade of management experience running multiple software businesses. Most recently he ran an artificial intelligence company focused on workforce transformation in the quick serve restaurant industry and raised $18MM in venture capital and private equity.
Acquisition Criteria
1. Recurring Services
Service based businesses that offer non-custom work, and solve real world problems for their customers provide ideal business opportunities that fit within my approach and growth goals. Examples include maintenance, landscaping, management, cleaning, etc. Preference is given for companies that are based along the 36 / i25 corridor of Boulder, Broomfield, and Denver.
2. Standardized Work
This is an all encompassing category that covers everything from landscaping, power washing, house cleaning, epoxy flooring, pest control, etc. Open to all forms of home and business service companies, but it's important the work doesn't require detailed quote development, intensive RFP's, or long sales cycles. The ideal business provides services that are standardized and needed every day.
3. Profitable
The most important gating factor for me when reviewing any potential acquisition will be the businesses overall financial health and profitability. My ideal target businesses have over $350,000 in net income, and maintain profit margins north of 15%. Special attention will be given to businesses that have recurring revenue, high retention rates, high net promotor scores and low employee turnover.
Approach
To maximize legacy and increase the long term value of your company I'm going to focus on the four key areas listed below. My approach is designed to increase topline revenue, improve margins, and expand recurring revenue to deliver greater stability and predictability.
Industry Consolidation
An exciting opportunity for increasing the long term value of your business will be focusing on mergers and acquisitions. This will allow for greater value selling, consolidation of expenses, and cross selling products between customers.
Online Marketing
Utilizing an existing marketing team that has demonstrated 50%+ increases in topline revenue for SMB's through targeted advertising. This will drive meaningful increases in the overall size of the business within two years.
Recurring Revenue
For businesses that do not have high recurring revenue, an intense focus within the first year will be to transition customers to subscription based income, and utilizing AI to offer ongoing insight, maintenance & support.
Digital Transformation
Upon closing an acquisition, artificial intelligence (AI) software may be deployed to improve margins, automate processes, and deliver new capabilities to paying customers that can be monetized to help drive alternative revenue streams.
About Me
Valyant AI: Founder and CEO of an enterprise grade artificial intelligence (AI) platform that automates labor in fast food restaurants. I've run this company for the past seven years and raised over $18MM in capital from family offices, private equity and venture capital. I stepped down as CEO in August 2023 and now I'm looking for my next opportunity.
My core competency is company culture and sales. While running Valyant we closed deals with numerous major corporations including Chick-fil-A, Yum! Brands, Inspire Brands, & CKE.
AppIt Ventures: Founder of a custom software development company that has built and launched over 350 applications across mobile, web, and backend. I acquired a development team in Hyderabad, India, and then a custom development company in London, England. Our highest profile project was the State of Colorado's digital drivers license (a first in the nation).
My wife Erin Carpenter, and our daughters Charlotte and Claire. Taken at Wash Park in Denver.
Media Experience: Over the course of my career I've had the opportunity to be interviewed in print or on-air, across dozens of major meida outlets. One of the things I'll bring to your company is a solid understanding of public relations, brand building, media poise, and public speaking. Select articles and outlets are included below.
Education: Masters degree from CU Denver with a specialization in Enterprise Technology Management, and experience serving on the board for the CU Denver student and alumni Venture Capital Fund. Undergraduate degree in Entrepreneurship (yes that's a thing), from Northern Michigan University. Started the first on campus Student Entrepreneurship Group, and launched my first real company which was an advertising business and was the first student led product be to be sold through the university bookstore. Currently serving on the non-profit board for the Office of Economic Development in Marquette, Michigan.
Family: Last, but most importantly, my amazing family that have supported my prior entrepreneurial journey's and my transition into launching a search fund to find the next great business to run and grow.
Expertise
Over the course of my entrepreneurial career I've attempted to be as self-reflective as possible. I'd quantify my innate qualia as driven, hard working, and creative. Externally I believe I deliver a lot of value in the following three areas:
Culture
Focusing on building people up and helping them achieve their goals in life and work
Sales
Demonstrated record managing and closing deals with major corporations
Strategy
Optimize business models, find win / win deals, and create ongoing revenue
If you are a business owner considering selling your company, a business broker, or an investor interested in partnering on the acquisition of a company, please contact me below. Everything discussed will be kept strictly confidential.
Contact Information
(303) 358-6128
rob@frostrivercapital.com
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